MUMBAI: Cathie Wood, one of the most eccentric investors on Wall Street, believes that the ongoing meltdown in cryptocurrencies such as Bitcoin is not over yet but sees it as an opportunity as she stuck to her asset management company’s target of $500,000 on Bitcoin.
The chief investment officer of ARK Investment Management, considered similar to Warren Buffet among technology investors, told Bloomberg TV that Bitcoin is “on sale” as the cryptocurrency lost nearly half of its market value today after crashing more than 30 per cent at one point in the day. The oldest and most popular cryptocurrency in the world at one point held a market capitalization of more than $1 trillion.
Media reports that Chinese regulators have asked financial and payment institutions to steer clear of involvement in cryptocurrencies weeks after the country’s central bank said that Bitcoin is an “alternative investment” was the latest trigger for the sell-off in Bitcoin and other cryptocurrencies.
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Besides today, Bitcoin has been under selling pressure throughout the past five days after Tesla shockingly backtracked on its move to accept Bitcoin as payment for its car after Elon Musk raised concerns over the excessive use of fossil fuels in keeping the Bitcoin infrastructure running.
Musk argued that as a company that focuses on reducing the reliability of the global economy on fossil fuels, it cannot support the use of fossil fuels in the running of Bitcoin. But, Tesla remains the owner of Bitcoins on its balance sheet after the company bought $1.5 billion worth of the cryptocurrency.
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Wood, who has been the biggest backer of Tesla, also told the business news channel that she expects Musk to come back into Bitcoins once the cryptocurrency starts to adopt more renewable sources of energy in its functioning.
“After he took the position, he got push back from institutional investors like Blackrock. Don’t think he expected that,” Wood said.
