ARK Invest is convinced that fundamentals are currently driving the Bitcoin price higher. In addition, the company still sees a lot of growth potential in BTC. What are the reasons for that?
ARK Invest is an American asset management company founded in 2014 by Catherine D. Wood. The company currently manages assets of $ 29.3 billion and invests in cryptocurrencies such as Bitcoin, among other things.
Every year ARK Invest publishes a “Big Ideas 2021 Report” in which it reports on investment ideas. According to the report, Bitcoin still has enormous growth potential. Ultimately, the asset manager believes that if several more companies follow Square and MicroStrategy’s lead and invest some of their capital in Bitcoin, the BTC price could soar dramatically.
In addition, ARK Invest says that if all S&P 500 companies put one percent of their capital reserves in BTC, the BTC price would rise by about $ 40,000.
Fundamentals are driving Bitcoin price
In addition, according to ARK Invest, the current price increase in Bitcoin is less driven by hype than it was in 2017. One of the reasons for this is that some companies are already classifying BTC as a safe haven. To this end, MicroStrategy added more yesterday and bought a total of just under 295 BTC.
If S&P 500 companies invested just 10 percent of their capital reserves in Bitcoin, the BTC rate could rise by as much as $ 400,000, according to ARK Invest. To date, the number of companies investing in Bitcoin is extremely small compared to all listed US companies. At the last review, there were fewer than two dozen publicly traded companies that have BTC on their balance sheets. But not only ARK Invest believes that this will soon change. Elon Musk also predicts an increased number of companies to enter Bitcoin.