Cathie Wood and her $400,000 Bitcoin price target

Who is Cathie Wood?

Cathie Wood, CEO of Ark Invest, first burst onto Wall Street’s radar with her $4,000 Tesla call back in Feb 2018, when the EV maker’s stock price was around $200. When she first came out with that price target, she was laughed out of town. But, since her call, Tesla has just been on an absolute tear, ripping upwards in a face melting rally that took Tesla to up $650, AFTER a 5-1 stock split! Which means taking into account the stock split, Tesla would be now trading at around $3,250!

And that’s not the end. With Tesla joining the S&P 500, it looks like their stock will be going up and to the right for quite some time. Cathie has since doubled down on her Tesla call and said $7,000 will not be a problem. To understand her perspective better, while we all see Tesla as an automaker, she sees it as purely a technology company, disguised as an automaker. She reckons that Tesla will lead the autonomous car industry, and monopolize the robo taxi fleet when it comes to life. After all, their self driving technology is second to none.

That, plus their advanced infrastructure in terms of charging stations puts them way ahead of the EV and autonomous driving curve. Any new entrant will probably have to leech on their infrastructure, potentially unlocking another revenue stream.

Now that you’re up to speed with her last crazy bullish call, which turned out to be on point, let’s see what she’s up to now.

Cathie Wood – Bitcoin can go between $400K and $500K

Oh.

Bitcoin and moon calls are becoming more and more common these days, with the $100K figure by Anthony Pompliano now sounding super bearish and pessimistic in contrast.

But let’s hear it from the horse’s mouth on how she articulates and justifies the future of bitcoin price movement.

Below is a 30 minute video where she speaks broadly about the employment report and her market commentary. I’ve bookmarked it to start where she talks about bitcoin toward the end.

Better regulatory governance, institutional involvement and mainstream acceptance of bitcoin as an asset class will continue to push prices up. As it is still a nascent asset class, price discovery is still in early stages, and trillions of funds are waiting by the sidelines lining up to get involved. Even big banks are getting in on the action and starting to provide services such as trading and custody of bitcoin for their institutional clients.

If institutions decide that a 5% allocation to bitcoin is appropriate (as is real estate allocation to funds and institutional investors), this will easily bring the price to $400K.

Ark Invest has also released a 2-part report on their Bitcoin outlook.