One Congressman Has Dumped His Crypto Stake, but Cathie Wood Expects It to Rise 5,600%.

BTC is back, in case you didn't know. The cryptocurrency king lost around 70% of its worth between November 2021 and 2022. But it's roughly quadrupled since then.

Could Bitcoin maintain momentum? Ark Invest founder Cathie Wood agrees. She anticipates the hot cryptocurrency to rise beyond 5,600%. One Capitol Hill merchant disagrees with her.

What makes Wood so optimistic about Bitcoin Early in 2024, the SEC approved eleven investment firms to provide spot Bitcoin ETFs. Wood's Ark Invest was. Several Bitcoin ETFs are available.

Money flowing into Ark Invest and other new ETFs has increased Bitcoin demand. At the March Bitcoin Investor Day conference, Wood called the SEC's clearance a "institutional green light." She stated that Ark Invest expects institutional investors to hold 5% of their portfolios in Bitcoin. Ark Invest estimates this might push Bitcoin to $3.8 million.

Bitcoin's halving is another reason Wood likes it short-term. Halving occurs every four years. The last was April 19. Bitcoin rose following the 2012, 2016, and 2020 halvings. Wood anticipated at the Bitcoin Investor Conference that this year's halving will be a trigger.

Rep. Shri Thanedar, D-Mich., disagrees with Wood's optimistic view of Bitcoin. Congressman sold his Bitcoin stake recently. Thanedar sold before the halving event on Feb. 5, 2024. Not only does the Michigan Democrat dislike Bitcoin. His Ethereum and LiteCoin interests were cut the day he sold Bitcoin.

Rep. Thanedar: crypto bear? Maybe. Even so, his pessimistic outlook extends beyond cryptocurrency. Thanedar has aggressively sold Alphabet, Amazon, Apple, and Microsoft stocks in recent months. His selling went beyond the "Magnificent Seven" stocks. Thanedar cut his Berkshire Hathaway investment in January.

Bitcoin: Sell or buy? Bitcoin: screaming buy or sell? My position is mid-range. Wood's projection of institutional investors investing over 5% in Bitcoin seems unlikely. So far, the cryptocurrency hasn't rallied after the reduction.

Rep. Thanedar's Bitcoin selloff shouldn't necessarily discourage investors. I think selling all the stocks mentioned will be stupid in the long run. Buffett called Bitcoin "rat poison squared." I agree with the famed investor that cryptocurrencies don't have intrinsic value like stocks. Similar arguments may be made regarding gold, which investors have long bought. However, as Bitcoin is only worth what others think it is, it might be worth much more or less in the future.