Cathie Wood Doubles Down on Bitcoin, Tesla & AI
Market leaders such as Tesla CEO Elon Musk and Ark Invest CEO Cathie Wood have criticized the U.S. Federal Reserve for continuous rate hikes, which they say have been impairing market conditions and risking recession. However, a slowdown in rate hikes by the U.S. Fed this year has sparked bullish sentiment in the global markets.
Just-In: Ark Invest CEO Cathie Wood’s Next Strategy On #Bitcoin, #Tesla And #AI.#CryptoNews pic.twitter.com/9LRtlwwDNL
— CoinGape News (@CoinGapeMedia) February 18, 2023
Growth Stocks to Recover Lost Gains
Cathie Wood, speaking on Saturday, said that growth stocks and innovation-based strategies would recover the lost gains as the “brutal interest rate increase” by the U.S. Federal Reserve comes near to an end. As part of its active equity management strategy, Ark Invest is heavily buying Coinbase (COIN) and Tesla (TSLA) shares from low. On February 14, Ark Invest purchased a total of 14,636 Coinbase (COIN) stocks as the stock price dipped below $58. Cathie Wood predicts Tesla stock to hit $1500 in the next five years, marking a 675% increase.
Moreover, Cathie Wood noted that many Wall Street investors, including Charlie Munger, lack an understanding of lower costs associated with technologically-enabled innovation. This statement came after Charlie Munger said he prefers investing in Warren Buffett-backed BYD over Tesla. Ark Invest makes most of its investment in technology stocks. The firm believes that Artificial Intelligence (AI) is creating the assembly line for knowledge workers.
Bitcoin’s $1 Million Price Prediction by 2030
Ark Invest thinks AI will boost knowledge workers’ productivity by more than 4-fold by 2030. At 100% adoption, AI could increase global labor productivity by almost $200 trillion, dwarfing the $32 trillion in total knowledge worker salaries. Cathie Wood reiterated her bullish stance on Bitcoin, predicting that the BTC price will hit $1 million by 2030. She also believes Bitcoin can help countries troubled by inflation, similar to an insurance policy.
Considering Cathie Wood’s earlier prediction in AI and the rebound in Tesla and Coinbase shares, Bitcoin’s price hitting $1 million by 2030 may come true. However, BTC price at $100K is most likely to happen by 2023-end or early 2024.
