Bitcoin
and other cryptocurrencies climbed on Friday as sentiment improved across wider markets amid strong earnings from tech companies. It’s a bullish trend—but not nearly as bullish as a new price call for Bitcoin from Cathie Wood’s ARK Investment Management, which lays out a case for the token going stratospheric.
The price of Bitcoin gained 2.5% over the past 24 hours to $43,150, remaining near two-week highs and above the psychologically-important $40,000 mark. But the largest digital asset remains off its recent peak above $48,000—its highest levels since early 2022, reached last month amid the trading frenzy around the U.S. approval of spot Bitcoin exchange-traded funds (EFTs).
“Bitcoin is clearly in a consolidation phase after the run-up and drawdown with these newly launched ETFs,” said Phillip Shoemaker, executive director of blockchain group Identity.com. “If you look at the inflows of capital, these Bitcoin ETFs have clearly attracted a lot of interest. Longer term, this is going to be a bullish setup for Bitcoin and, in turn, I expect that the passively invested money going into these ETFs will help to dampen some of the volatility.”
Cryptos have climbed this week alongside the
Dow Jones Industrial Average
and
S&P 500
in the stock market as risk sentiment has improved. Investors are bullish after strong quarterly results from tech companies and continue to be confident that interest rates will come down significantly this year.
Bitcoin this week has also caught a bold new price call from ARK Investment Management, the group run by Bitcoin fan and tech perma-bull Cathie Wood.
An analysis by ARK examined various assets, including Bitcoin, gold, and stocks, in terms of their risk-adjusted return across the past five years, with a view to allocating capital to maximize risk-adjusted return. ARK found that the optimal portfolio allocation would have been 19.4% Bitcoin. Running the numbers in a scenario where the $250 trillion global investible asset base is realigned along these lines—a long shot, to say the very least—ARK predicted that the hypothetical impact of such allocation would push Bitcoin prices to $2.3 million. Now that’s bullish.
Beyond Bitcoin,
Ether
—the second-largest crypto—gained 2.5% to $2,320. Smaller tokens or altcoins were also higher, with
Cardano
climbing 6% and
Polygon
popping 4%. Memecoins were more muted, with
Dogecoin
and
Shiba Inu
up 2% each.
Write to Jack Denton at [email protected]
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