How Could Bitcoin Rise to $400K?

  Even before Tesla (TSLA) surprised the market with the news that it would buy $ 1.5 billion of Bitcoin (BTC-USD) in January, Cathie Wood and Ark Investments team were working on a model that would use Bitcoin in cash for more companies.

Wood said, "We expect institutions to start shifting mainly to Bitcoin and other crypto assets,"  in an interview with Yahoo Finance last week.

According to Ark's big forecast for 2021, if all S&P 500 companies allocate 1 percent of their cash to Bitcoin, the price of the leading crypto could increase by about $ 40,000. If these companies move 10 percent of their cash to Bitcoin, Ark predicts Bitcoin will climb to $ 400,000. The crypto moves of Wood, Square (SQ) and MicroStrategy (MSTR) supported the rise of Bitcoin. These pioneering moves mapped out a roadmap for public companies to use and see Bitcoin as a legitimate alternative to cash. Ark Invest said, “What surprised us in general was MicroStrategy's moves. They invested all the money on their balance sheet in bitcoin. They even offered another stock to put more cash on the balance sheet. It even held an IPO to put more cash on the balance sheet." “This is a bit crazy to us because we think regulators will have something to say about it. Then we see Square put 1 percent of its assets in Bitcoin, and you will see more than that. "

Tesla's latest Bitcoin investment accounts for about 8 percent of the company's cash reserves.

Wood's call for Bitcoin to go higher this year has already been answered. BTC hit an all-time high of $ 48,000 on Tuesday. Cathie Wood said, "Bitcoin has a market capitalization of roughly $ 600 billion. This means it's currently equal to half of Apple or Amazon. Doesn't that put it in a broader perspective? Still, we think this is a huge idea. It's a much bigger idea than Apple or Amazon. "   How Could Bitcoin Rise to $400K? Source: https://finance.yahoo.com/ You may also be interested in this:

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