A crypto exchange Crypto.com confirmed that hackers stole nearly $34 million during Monday's hack. In a Tuesday update, the exchange revealed that hackers stole 443.93 bitcoin ($18.7 million), 4835.25 ether ($15.2 million) and approximately $66,200 in USD. The company faced criticism over its communication after the incident. The company's CEO only confirmed the hack on Wednesday, three days after it took place. In total, the hack affected 483 users. However, Crypto.com said that they fully reimbursed all of them. The…
Though Bitcoin has failed to hit some of the loftier December price targets earlier this year, Cathie Wood remains bullish on the asset long-term. She recently reaffirmed her $500k price prediction from months ago, so long as institutions continue to diversify into it.
Despite a volatile spot price, institutional adoption has steadily grown throughout 2021.
Staying Bullish On Bitcoin
YESTERDAY MORNING, the ARK Invest CEO gave her price forecast with CNBC’s Squawk Box. When asked whether she thought the crypto sector was due for a correction, Wood offered a contrary point of view.
“I think institutions are moving in, and right now, crypto of any sort is a de minimis percentage of institutional portfolios,” she said. Further, she claimed that the asset class is uncorrelated from other assets, with the closest comparison being real estate.
“Institutional managers have to look at new asset classes that are evolving that have low correlations. That’s key to diversification and the Holy Grail in terms of asset allocation.”
In the long run, her company expects Bitcoin’s price to surge by $500k if institutions move 5% of their portfolios into it.
Though Bitcoin is up considerably on the year, its growth has been far slower than experts predicted. Given the asset’s history of parabolic price moves across four-year time frames, some expected it to reach as high as $200k by year’s end.
However, Bitcoin rests beneath $50k as of mid-December, after suffering multiple massive corrections this year. Furthermore, after accurately predicting multiple monthly closes, infamous analyst Plan B’s bullish $98k November prediction grossly failed to manifest.
However, wood remains a Bitcoin believer, showing excitement about its fundamentals instead of its daily price movements. Her company helped arrange “The B Word” conference in July, debunking various digital asset myths. She called it “the first rules-based monetary system ever.
Institutional Adoption Sees Healthy Growth
From a long-term adoption perspective, Bitcoin has nothing to worry about. In February, Tesla purchased $1.5 billion worth of the asset, while Microstrategy has continuously accumulated it since 2020. Even a tiny nation-state has made the radical first step in making Bitcoin legal tender.
Not only are institutions starting to hoard Bitcoin, but they’re building out its functionality. For example, Jack Dorsey – former CEO of Twitter and current head of Block – has launched numerous initiatives to develop the protocol. His team recently helped create a Lightning Development Kit to help anyone easily integrate the lightning network into various applications.