Cathie Wood, Ark Invest hedge fund’s CEO, told Bloomberg her team is convinced that bitcoin will grow to $500K. However, right now, the dynamics of BTC have changed to negative due to the discussion about the bitcoin blockchain energy efficiency.
The discussion was started by the cryptocurrency market “enfant terrible” Elon Musk, in order to promote “his” Dogecoin (DOGE) and simultaneously to promote Tesla. Musk claims that a lot of dirty electrical power is used to mine bitcoin, including generated by burning fossil fuel. However, there is no exact data on how much dirty power utilized by bitcoin, and how much green power used for mining. By the way, there is a misunderstanding about what power is considered green. If the energy from the hydroelectric power station is green, then it turns out that bitcoin utilizes mainly green energy.
Katie Wood said she intends to clarify this issue in order to exclude speculation and eliminate the negative factor that has collapsed the market. Ark Invest, together with Jack Dorsey’s company Square, intend to hold a conference in July on how bitcoin mining is integrated into a distributed power grid that includes solar panels and other sources of green energy.
Wood also argues that on the contrary, bitcoin mining provides a new opportunity to use excess power from wind turbines and solar panels, which have an uncertain generation mode depending on weather conditions. Thus, bitcoin mining is becoming a green industry and boosting the development of renewable energy sources. If the conference takes place, it will put an end to speculation about the harm of bitcoin mining to the environment. This negative factor will cease to affect the market, and bitcoin will start growing again. However, according to Katie Wood, we can already talk about reaching the bottom.
Although the expert does not name the exact price below which bitcoin will not fall, she states that now is a good time to buy BTC. Katie states:
– We are in the capitulation phase, which is a really great time to buy. No matter what the asset is, capitulation is a buy. It’s on sale.
According to the expert, all market indicators confirm that the capitulation is taking place right now. But this does not mean that capitulation will not be continued at lower levels.