As Bitcoin reaches the most significant six-months low, reaching $55,000, Ethereum is also looking to keep the all-time high level. However, traders and investors are looking at the news about who will become the next chair of the US Federal Reserve.
Cathie Wood Believes in Her Huge Bitcoin Predictions
The chief executive of Ark Investment Management, Cathie Wood, still believes in her prior Bitcoin predictions. However, she warns that the Fed might increase interest rates.
Wood claims there’s still some great present after the Bitcoin crash in May. According to JPMorgan, the Fed will try to fight inflation, but any movement will likely happen in September next year.
Cathie also believes that the Fed won’t hurry things up. Regardless, the market will recover. According to Cathie, the market will go through some corrections, as it’s normal for investors to take profit.
Still, she remains bullish on Bitcoin and Ethereum, claiming that the $500,000 price isn’t impossible. Moreover, institutional investors allocate about 5% of their portfolio into cryptocurrencies, which can easily push Bitcoin to the target price.
On-chain analytics also shows that institutions are truly moving into crypto. Woods also mentions the report written by Cambridge Associates in 2019 that advised institutions to look into Bitcoin and crypto.
Wood is also bullish on Ethereum, specifically because of DeFi and NFTs, primarily built on the Ethereum network.