Cathie Wood’s ARK Invest Highlights Bitcoin Bullish Signals Amid All-Time High Approach
ARK Invest, the investment firm led by tech investor Cathie Wood, has identified several positive indicators for Bitcoin’s price as it climbs near its self-established all-time high of $111,814.
Key Takeaway
Bitcoin has not reached “irrational exuberance,” according to ARK’s analysis, downplaying recent signs of potential market mania.
Bullish Indicators
- Aggregate Unrealized Gains: Despite rising, Bitcoin’s aggregate unrealized profits stand only one standard deviation above the average within its current cycle, falling short of levels typically seen during mania.
- ETF Inflows: Significant inflows into Bitcoin ETFs, which surged to $5.5 billion, contrast sharply with declining gold ETF inflows ($1.5 billion).
- Technical Support Levels: Price increases have bolstered key support zones between $94k-$97k, breaking through important technical averages and historical thresholds.
Bearish Considerations
- Activity Metrics: Declining GitHub commit activity to near-historic lows suggests reduced active development.
- Macro Conditions: Broader market signals include hesitancy in auto sales and supply chain cost pressures, alongside housing market imbalances.
While acknowledging mixed market signals and the convergence of both supportive and cautionary factors, Wood and ARK persist with their record-high price predictions.
Long-Term Outlook
ARK has previously forecast Bitcoin to reach $1 million by 2024 and, more recently, $2.4 million per coin by 2030, based on models assessing relatively liquid token supply. Even their conservative 2030 forecast ($500,000) is significantly above current valuation.
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