Cathie Wood says Bitcoin is going to $560k in five years

There is a subdued mood in the air among Bitcoiners as the price of the digital currency crashed by $10,000 over the past two weeks, bringing an end to a sustained period of upwards movement.
However, fear not, Cathie Wood, star capital allocator and founder of ARK Invest, delivered news yesterday that will be music to the ears of anyone with an allocation to Bitcoin.
Wood is predicting that Bitcoin will go to $560,000 per coin in the next five years.
Cathie Wood: If institutional investors move into bitcoin and allocate 5% of their portfolios, the value of a bitcoin would rise to around $560,000 by 2026. #bitcoin
— Neil Jacobs (@NeilJacobs) November 19, 2021
Wood’s price forecast is under the assumption that institutional investors allocate 5% of their portfolios into Bitcoin.
Having pulled back from record levels seen just over a week ago, Bitcoin is standing at just over $58,000, meaning Wood’s prediction would represent close to a 10x appreciation.
Bitcoin price one year ago: $18,000
— Dan Held (@danheld) November 19, 2021
Bitcoin price today: $58,000
It's all about perspective.
Zoom out.
Additionally, when institutional adoption does happen, Wood and other analysts will know.
The blockchain’s transparent nature means that users will be able to see confirmation of the transactions going ahead in real time.
“We can tell it’s happening because of on-chain analytics,” Wood said.
Cathie Wood uses on-chain analysis.
— Will Clemente (@WClementeIII) October 30, 2021
It’s probably nothing.. 😴 https://t.co/3Dmv5CYBJZ
An attractive proposition to investors is the fact that Bitcoin is not directly correlated to other assets like stocks, which means it could allow investors to spread their level of risk.
“The correlation is very low,” said Wood, adding that by investing in crypto “you will be raising returns and lowering risk over time”.
Bitcoin is the best institutional-grade asset that provides investors with an asymmetric return profile, while also presenting non-correlation to their investment portfolio.
— Pomp 🌪 (@APompliano) November 19, 2021
Every investor on Earth is looking for a non-correlated, asymmetric asset. pic.twitter.com/nJHWjlPIme