A Recent report by analysts suggests that the price of Bitcoin’s could surge by another $500,000 as institutional investors search for uncorrelated assets.
Ark Invest’s CEO, Cathie Wood Disclosed this during an interview on Thursday
Wood explained that institutions are always in search of investments that are uncorrelated to traditional asset classes like stocks and bonds, and Cryptocurrency would fit into that space perfectly.
“I think institutions are moving in [to crypto] right now,” Wood said, adding that they currently prefer the two largest cryptocurrencies, bitcoin and ether.
As a whole, according to Wood, institutions barely have any exposure to the space.
“The reason institutions are moving in is to some extent this is a new asset class with correlations very different compared to other asset classes,” Wood explained.
A study conducted by Ark Invest found that the asset with the closest correlation to bitcoin is real estate.
Real estate counters the commonly held belief that cryptocurrencies are risk assets that move in tandem with broader moves in the stock market.