Cathie Wood-led Ark Investment announced they have bought $20 million worth of bitcoin as per the company’s filing with the SEC. The company had earlier added bitcoin exposure to their popular funds via investment in companies such as Microstrategy and Grayscale Bitcoin Trust fund (GBTC) purchases.
Wood is a known Bitcoin proponent who has advocated for the top cryptocurrency even when the likes of Elon Musk were propagating FUD against Bitcoin mining. Her firm had also bought Coinbase Shares by selling a portion of their Tesla shareholdings.
Wood also said that the recent turmoil in the market should not be a cause of worry and Bitcoin is still looking set to touch 5-digit price by the end of the year while maintaining her long-term price target of $500,000 per BTC.
Bitcoin Demand Has Not Deterred Despite Price Volatility
Bitcoin price fell over 50% from its ATH last month during the recent market pullback which saw more than $500 billion getting wiped off. However, apart from the social media frenzy and panic selling from new investors, its demand remains intact from long-term holders.
The price volatility which is often pointed to as a flaw of Bitcoin is one of its biggest strengths as it allows for a similar recovery upward even if the fall is as hard as 50%. The market shake-ups as the current one are nothing new either and the previous bull cycles have seen several market corrections in upwards of 50%, before pulling back to ne ATHs.
The demand from institutions especially those who understand the potential it holds for the financial future has not deterred even in these times. Many crypto analysts were certain of such pullback and have pointed that the price cannot indefinitely move in one direction, the shake-ups are necessary to take out the weak hands from the market.