1 Top Cryptocurrency to Buy Before It Soars 3,186%, According to Cathie Wood

1 Top Cryptocurrency to Buy Before It Soars 3,186%, According to Cathie Wood

Ark Invest, the asset manager headed by Cathie Wood, focuses on owning businesses that have major disruptive potential. The thinking is that innovative companies can lead to huge growth potential, resulting in attractive long-term investment returns.

The famed investor appreciates new technologies, so it’s no surprise that her fund is also bullish on digital assets. To be more specific, there is one top cryptocurrency Cathie Wood believes could soar 3,186% to $2.3 million. Perhaps it’s time you considered buying.

The bull case for Bitcoin

As the oldest, most valuable cryptocurrency, Bitcoin (CRYPTO: BTC) gets a lot of attention. In more recent times, its price has surged, rising 325% since the start of 2023. This has placed an even brighter spotlight on the asset.

But Cathie Wood believes there is significantly more upside. In Ark Invest’s Big Ideas 2024 research report, the firm’s analysts could possibly see Bitcoin’s price per coin getting to $2.3 million. That’s a monster 33-fold gain from today’s $70,000 level (as of the morning of April 11).

This lofty price target is based on the simple fact that Bitcoin will attract larger amounts of capital over time. Getting to $2.3 million implies that nearly 20% of the $250 trillion of global investible assets would find their way to Bitcoin.

This begs the question: Why would more investors want to buy and hold Bitcoin? I believe there is really one key reason the digital asset could become a mainstay in more portfolios.

It all has to do with scarcity. There will only ever be 21 million coins in circulation. Owning something that has a fixed supply cap seems like a smart move.

Cathie Wood and Ark Invest also argue that Bitcoin proved itself as a safe-haven asset, as its price rose meaningfully in 2023 following the regional banking crisis. Additionally, the firm believes that because of the ability to preserve capital, diversification benefits, and liquidity, Bitcoin can reduce risk for investors.

Should you be buying near all-time highs?

Bitcoin is currently in record territory. Naturally, some investors are probably wondering if now is still a good time to be buying the crypto. Cathie Wood thinks so.

That’s because Bitcoin is benefiting from numerous catalysts at the moment. There’s the recent approval of spot ETF products that puts somewhat of a stamp of approval on Bitcoin. The halving is coming up soon, which has historically been a bullish event that reduces new supply entering the market. And greater institutional acceptance, coupled with regulatory clarity, are also positive factors.

Ark Invest’s research shows that any investors who purchased and held Bitcoin during any five-year stretch would have generated a profit. This is encouraging for those who have been on the sidelines and missed the current rally.

To be clear, though, investors should take the time to understand and learn more about this unique asset and its special characteristics. Only then can you build the conviction needed to be able to hold through the inevitable periods of heightened volatility.

If you do decide that it’s time to buy Bitcoin for your own portfolio, consider adopting a dollar-cost averaging strategy. This eliminates the need to correctly time the market. Instead, you can purchase Bitcoin at regular intervals to take advantage of multiple entry points. Just be sure to maintain a very long-term mindset.

Cathie Wood’s Bitcoin price target might seem incredibly lofty, and it’s anyone’s guess if this digital asset even gets remotely close to that level. But that doesn’t mean you shouldn’t consider buying this top crypto right now.

Should you invest $1,000 in Bitcoin right now?

Before you buy stock in Bitcoin, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

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Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

1 Top Cryptocurrency to Buy Before It Soars 3,186%, According to Cathie Wood was originally published by The Motley Fool