“This Is Just the Beginning,” Cathie Wood Shares Why #Bitcoin Will Go Higher from Here.

In an interview, Ark Investment’s CEO, Cathie Wood, identified that Bitcoin remains in an early growth phase. Despite its six-figure valuation, she emphasized that the premier crypto asset would continue to appreciate, citing its nascent institutional presence and favorable demand-supply dynamics.

Wood emphasized that Bitcoin is getting scarce. An interesting detail to this is that institutions have yet to arrive on the scene at scale. While the statistics are improving daily, with new firms adding Bitcoin to their reserves, a vast majority of prominent firms have yet to adopt the prominent cryptocurrency.

Notably, Bitwise CIO Matt Hougan recently noted that while 95% of Bitcoin is already in circulation, 95% of investable capital remains unexposed. Meanwhile, a study from Tephra Digital also showed that Bitcoin still cannot access $31 trillion in wealth, as financial advisors continue to observe the asset’s progress.

As a result, Wood noted that it is just the beginning for Bitcoin. According to her, institutions that would adopt Bitcoin from here would have to buy up the newly mined BTC, which dropped again to 3,150 BTC per week with the 2024 halving.

Another option is to “pay up” to get retail holders to sell off their stash. Recall that a Bitwise report showed that over 69% of Bitcoin’s supply is in the hands of individuals. As a result, institutions would have to hope that they paper-hand their Bitcoin to have some to buy.

Conclusively, Wood highlighted that Bitcoin’s scarcity value will increase due to the huge supply-demand imbalance, driving prices higher. Additionally, this simple economics would continue to ensure that the asset’s price appreciates indefinitely.

#Crypto