No. 1 cryptocurrency is a bigger phenomenon than Apple
Cathy Wood, founder of investment firm ARK Investment, believes the bitcoin phenomenon is much bigger in terms of importance than Apple or Amazon. She sees great financial potential in the No. 1 cryptocurrency, noting its “fully decentralized nature.” Bitcoin has become a “trailblazer” in the world of digital assets, and “institutional companies are increasingly investing specifically in digital assets, and certainly especially in the No. 1 cryptocurrency, as it operates on the most robust blockchain of all blockchains.”
Wood also noted that changes in bitcoin’s price do not correlate with any other financial asset. This means that the No. 1 cryptocurrency “allows significant diversification of an investor’s portfolio and thereby increases its returns while reducing the level of overall portfolio risk.”
She admitted that she is surprised by how institutional investors have become invested in bitcoin: “Look, MicroStrategy invests in bitcoin from its balance sheet, Square invests 1% of its assets in this cryptocurrency. MassMutual’s investment fund has invested $100 million in bitcoins.”
The MicroStrategy phenomenon is indeed remarkable. Earlier this week, for example, the company acquired another 295 bitcoins, paying about $10 million. As a result, MicroStrategy now has 71,079 thousand bitcoins on its balance sheet, with an average purchase price of $16,100 per unit. The head of MicroStrategy is confident of further growth in the price of the No. 1 cryptocurrency in the long term.
It is worth noting that the number of large investors in bitcoins continues to increase, and the amount of reserves of these digital assets on cryptocurrency exchanges is now at its lowest level since mid-2018. Meanwhile, Amsterdam Stock Exchange trader Michael van de Poppe believes it’s important for bitcoin to consolidate above the $35,000 mark (the No. 1 cryptocurrency is trading at $36,76,000 at the beginning of Feb. 4). In this case, the next important levels are $38,000 and $40,500. In the case of a bitcoin price failure, the cryptocurrency may test values around $25,000-26,000.
