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Investor Cathie Wood On Bitcoin, Why She Sold Stocks In China, And What Her Firm Is Buying Now

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Cathie Wood, founder and CEO of Ark Invest, is bullish on Bitcoin and has sold stocks in China.
Cathie Wood, the wildly successful money manager known for making a huge bet on Tesla, weighed in on her support for Bitcoin, explained why her Ark Invest firm has sold nearly all the Chinese stocks it previously owned and talked about what her firm is buying now during an appearance on a panel Thursday. Here’s what Wood—who appeared on Forbes’ list of America’s Richest Self-Made Women in August, with an estimated net worth of $400 million—told the panel, moderated by angel investor and entrepreneur Jason Calacanis at PreMoney, a conference put on by venture capital firm 500 Global in Miami Beach, Florida.
BITCOIN
In September, Wood predicted that the value of Bitcoin would rise to $500,000 in five years. She  remains a staunch supporter of Bitcoin, despite some in the crypto world losing their affinity for it. “There’s a sense that the Web3 world is evolving away from Bitcoin and Ether into cheaper, faster” cryptocurrencies, she said. “But they forget that the more features and the more centralization you have … you’re talking about recreating Visa.” That is, recreating an old structure in a new form. Wood said she’d been “hearing that Bitcoin is so yesterday. I think that’s a big mistake. Look at what’s going on in El Salvador.”
Calacanis asked in response: “You believe that dictator? You don’t think he’s a bad actor?”
Wood replied that they’re “giving $30 in each Chivo account [the digital wallets created for each citizen in El Salvador]. Pre Chivo, only 1.2 million people had bank accounts. Now 3 million out of 4 million eligible people in El Salvador have banking services.”
Calacanis followed up: “Most tech doesn’t last more than a decade. Why would Bitcoin last any longer than that?”
Wood answered: “This is the most secure blockchain technology out there. What’s going on right now would have been [Nobel Prize winning economist] Robert Mundell’s dream: to introduce a global monetary system not under anyone’s control.” (Wood explained that she studied under supply side guru Arthur Laffer – an economist famous for the Laffer Curve—who was influenced by Mundell.)  She elaborated: “Look at Turkey. The Turkish people have lost half their purchasing power since February. Wouldn’t it be nice to have a little Bitcoin?”
CHINA
The topic turned to China, and the moves the Chinese government has made thisCK year regarding digital assets—banning cryptocurrency exchanges and outlawing the mining of cryptocurrency. Wood said her firm had owned shares of Chinese e-commerce giant Alibaba, but had sold them along with other Chinese stocks. “We own very, very few stocks there [in China] because they’re unpredictable. They are grappling with what most governments are grappling with: the gap between rich and poor.” Wood added that 75% of consumer savings in China is held in real estate, and real estate values are starting to fall. Her analysis: That the Chinese government is willing to risk the decline in real estate values in order to address the wealth gap.
Calacanis put it this way: “I think the mad king is circling his wagons because he feels threatened. I’m talking about Xi Jinping.”
Wood’s response: “I think it’s to the benefit of the U.S. if China isolates itself. They are less likely to become the global superpower.”
WHAT WOOD IS BUYING NOW
Wood said Ark has been buying Robinhood–a stock that has fallen nearly 40% since its IPO in July—but didn’t elaborate on why. Also: “We’re looking for the digital wallet: Coinbase, Square’s Cashapp, Paypal’s Venmo less so,” she said. “Most analysts are focused on banks, which we think are being hollowed out … by defi and digital wallets.” So she’s staying away from traditional banks.
Two other stocks she’s buying: video communications tool Zoom and cloud communications company Twilio, both part of a new wave of telecom tools. “What I don’t think people recognize is that we have not had a refresh cycle [in telecom] in 30 years. She explained: “I’m thinking about Cisco … and the old telecom stack.” Covid, she said, has inspired a new crop of options.
Calacanis asked about electric automakers (possibly Rivian, though he didn’t specify), saying, “Speaking of fraud, should a company that’s sold zero cars be worth $150 billion?”
Wood’s answer: “Investing is about the future. It’s not fraud, it’s perhaps misvaluation. I don’t call that fraud at all.” Regarding the crop of publicly-traded electric automakers with little to no revenues, Wood said: “We called out Nikola. We knew what he [former chairman Trevor Milton] was saying was wrong. We knew that there was trouble.” (In July Milton was charged with securities fraud by the U.S. Attorney’s office in Manhattan; he pleaded not guilty). Wood also mentioned Rivian and Lucid, saying Ark doesn’t own either stock. Why? “They are going after niche markets.” She said Ark has spoken to both companies about autonomous driving, which they’re not focused on. Wood’s take: Without autonomous drivers, neither can scale—though Rivian may be helped by its ties to Amazon, which owns a chunk of the company and has pledged to switch to electric delivery vehicles.
Her bearish take isn’t exactly surprising, given the big bet she’s made on those companies’ biggest competitor. Wood pointed out that ARK discloses its holdings at the end of each day and has done so since 2014. Its single largest holding, by far: Tesla, where Ark is sitting on a $2.4 billion stake.

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The September Curse: Why Bitcoin Price May Touch $10,000 – NewsBTC

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September has been a historically bearish month for bitcoin and the rest of the crypto market by extension. Back in 2021, bitcoin’s deviation from expected market trends had sparked hope that it would break the September curse, but alas, it followed it to a T. This is why with the new month already ushered in, there are expectations that the price of BTC will continue to dive and likely reach lower trends as it enters the worst of the bear market.
One of those who have referred to the September curse in their analysis of the price of bitcoin is Scott Redler, the Chief Strategist at T3 Trading Group. Redler posted a bitcoin chart outlining the movement of the digital asset since last year, marking important technical points that had triggered a downtrend in its price.
An important level that has been mapped out by BTC lately is the $17,600. This represents the new local low after the cryptocurrency had set a new record and plunged below its previous cycle peak. Now, $17,600 has become the level for bulls to hold to avoid further decline.
Redler’s chart shows that if the digital asset fails to hold above this level, then the next support lies around $13,500. But even more interesting is the fact that below $13,500, the next possible point is at the dreaded $10,200. 
Bitcoin price chart from TradingView.com
The strategist explains that the month will determine where the price of BTC ends up following this. However, if bulls are able to hold above this level, which ends up serving as a bounce point, then BTC’s next major level lies just above $25,000.
Bitcoin is an asset that has always followed historical trends closely. Even when it had broken out of set trends back in 2021, it still kept close to others. One of those was the infamous “September Curse.” For anyone who doesn’t understand what this is, the term was coined because bitcoin’s price has always recorded a decline during this month.
Last year was no different in this regard despite the fact that the crypto market is deep in the throes of a bull market. Bitcoin had started the month of September 2021 at around $53,000 but had lost more than $10,000 of its value by the time the month drew to an end. This was in spite of remarkable adoption, such as El Salvador officially accepting the cryptocurrency as a digital asset and Cardano finally debuting smart contract capability.
Given this, it is possible that bitcoin will stick to this trend. The digital asset is already showing signs of decline, starting the month above $20,000 and already falling below this important technical level. If BTC went the way it did in 2021, the price will likely drop to around $16,000, which would account for about 20%, in line with previous downtrends. 
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Trader Who Nailed 2022 Bitcoin Collapse Predicts Big Correction for XRP, Updates Outlook on Two Low-Cap Alt… – The Daily Hodl

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The crypto analyst who accurately predicted Bitcoin’s (BTC) crash this year says XRP is likely due for an over 50% decline.
The psuedonymous analyst known in the industry as Capo tells his 541,600 Twitter followers that open-source digital currency XRP remains in a downtrend despite its recent rally.
According to a chart shared by Capo, XRP appears poised to plunge to its high timeframe support at $0.20.
“XRP.”
At time of writing, XRP is changing hands for $0.447, an over 5% decrease on the day. The sixth-largest crypto asset by market cap has risen nearly 40% from its 30-day low of $0.32 but remains more than 86% down from its all-time high of $3.40.
Another altcoin on the trader’s radar is Stellar Lumens (XLM), a crypto asset designed to act as a bridge between two fiat currencies when sending money abroad. According to Capo, XLM gearing up for a quick rally to his target of $0.16 before resuming its downtrend.
“Long on XLM.”
At time of writing, XLM is valued at $0.118, flat on the day.
The analyst is also keeping a close watch on Reserve Rights Token (RSR), cryptocurrency designed to facilitate the stability of the asset-backed stablecoin known as the Reserve Token (RSV). According to Capo, RSR still offers more upside potential despite its over 90% rally in just two weeks.
“Support to resistance flip of the previous key level. Next target is $0.012, but main target remains $0.017. I haven’t taken profits yet, just trailing the stop in profits.” 
At time of writing, RSR is swapping hands for $0.0099, a 4.95% increase on the day.
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Bitcoin slips lower, and South Korea issues arrest warrant for Terra's Do Kwon – CNBC

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Bitcoin slips lower, and South Korea issues arrest warrant for Terra’s Do Kwon  CNBC
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