1 Top Cryptocurrency to Buy Before It Rises 2,700% According to Cathie Wood

Cathie Wood is famous for her predictions. They Ark Innovation ETF has invested in some of the highest-growth businesses on the planet, largely based on where he thinks the world is headed in the long term. She is a big believer in cryptocurrencies and has a price target of $1.5 million for a certain crypto asset.

Cathie Wood loves this ancient cryptocurrency

The crypto industry is used to making outlandish claims about what the future holds. In 2022, Wood was fully on the hype train. “Bitcoin is truly a money revolution,” she said.

At that time, the price of Bitcoin (CRYPTO: BTC) was between $15,000 and $20,000 following the crypto exchange crash FTX. She predicted that the price of Bitcoin could reach $1.3 million by the end of 2023. Although this did not happen, the price of Bitcoin rose considerably.

At the end of 2023, the price of Bitcoin was over $40,000. So, while Wood wasn’t quite right in size, it certainly nailed the overall trajectory of Bitcoin’s value.

This is what makes Wood’s recent predictions so interesting. Earlier this year, she predicted that the price of Bitcoin would reach $1.5 million by the end of 2030. This is about 2,700% higher than today’s price range of about $54,000. But she’s not done yet. This price target does not include the potential upside from higher-than-expected institutional exposure.

“We put our case for Bitcoin at $1.5 million,” she said Investors’ business day. But if institutional investors were to allocate about 5 percent of their portfolios to Bitcoin, she added, “that alone would add $2.3 million to the projection I just gave you.”

How Much Advantage Does Bitcoin Really Have?

Wood isn’t alone in believing that Bitcoin has huge long-term upside, even if its near-term price targets haven’t exactly panned out. Venture capitalist Tim Draper — who famously invested in Twitter, Coinbase, adzeSpaceX, Ring and Cylance — predicted in 2018 that Bitcoin would reach “$250,000 by 2022.”

Bitcoin price did not test those highs that year. But between 2018 and 2022, its value increased by about 1,000%. Like Wood, Draper’s trajectory was right — just not the magnitude.

Similar to Wood, Draper is still a huge long-term Bitcoin bull. In a recent interview, Draper defended his previous price target of $250,000. “When I predicted this, what I didn’t expect was how scary and just old the US would be,” he said in response to the lower-than-expected take-up from institutional investors. “I would say my $250,000 number is probably coming pretty soon, so I’ll stick with $250,000. In fact, I think if it gets to $250,000, it’s going to be way over that.”

The story continues

In the short term, it’s anyone’s guess where the price of Bitcoin is headed. Longer term, however, we have some guidance on how much potential there might be.

At the moment, the total market capitalization of Bitcoin is about 1.2 trillion dollars. Gold — an asset that shares many of Bitcoin’s stock-of-value characteristics — has a market value of more than $15 trillion. Despite Wood and Draper’s lofty predictions, their long-term price targets still put Bitcoin’s valuation at or below that of gold. And while gold has some industrial use cases, Bitcoin’s role in the expanding crypto ecosystem could ultimately give it more utility than any previous metal.

Bitcoin bulls have every reason to be bullish. But as history has shown, volatility will be the norm. Be patient, taking strange predictions for what they really are: signals of general confidence, unreliable measures of precise accuracy.

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Ryan Vanzo has positions in Bitcoin. The Motley Fool has positions and recommends Bitcoin, Coinbase Global, and Tesla. The Motley Fool has a disclosure policy.

1 Top Cryptocurrency to Buy Before It Rises 2,700% According to Cathie Wood was originally published by The Motley Fool