The company owned by Cathie Wood believes Bitcoin, which is currently trading at $83,563.05, is between two important levels. In a video released on February 11th, Kathy Wood said Bitcoin could reach $1.5 million over the next five years.
Currently, Ark Invest is a Bitcoin short-term bear, which costs an average of $92,020 for each coin, with a key support level, which is its 200-day moving average, sitting at $82,000 in US dollars.
The Fear & Greed Index reflects the “extreme panic” feelings that were last seen in 2017.
What’s even more positive is that Bitcoin’s used output profit margin (SOPR) has been reset to 1. This means that those who are selling now are broken, not suffering a loss. Through various cycles of market activity, this is a turning point before the price recovery begins again.
In “Bitcoin Response to Trump,” ARK Invest suggests that slowing circulation and declining consumer sentiment (particularly the US) are the reasons for market disruption. “Consumers and businesses appear to be more cautious amidst the uncertainty associated with the political transition in the US,” he said.
Households are reducing their spending as large retailers like Walmart revised their sales forecasts.
Institutional demand for Bitcoin appears to be strong despite the decline in prices. BlackRock has also launched Bitcoin Exchange Trade Trade Products (ETP) in Europe. Despite drops below $80,000, Bitcoin shows continuous strength in the chain.
Bitcoin Network is safer after an increase in mining difficulty by 2.2%. Meanwhile, long-term Bitcoin investors have risen by 4.7%, suggesting that many investors are not selling Bitcoin.
Long-term holders continue to manage a significant amount of Bitcoin. So, according to the report, we are confident that Bitcoin will increase in value in the future.
Bitcoin price target by Ark Invest. Source: Ark Invest
Bitcoin’s five-year CAGR is 74%. On February 11, Cathy Wood assumed that if Bitcoin achieved a CAGR of just 68%, it could achieve $1.5 million by 2030.