Cathie Wood, the founder and CEO of Ark Invest, repeated her prediction that Bitcoin (BTC-USD) will eventually top $500,000 and said she sees a long-term deflationary trend, despite the recent post-COVID spike in prices.
Speaking at a business conference on Monday, Wood also explained a recent sale of Tesla (NASDAQ:TSLA) stock, saying the decision to reduce her stake by 180,000 shares was a “tactical move” based on near-term market fluctuations.
The famed investor told the SALT Conference that she sold the TSLA shares to raise cash in order to buy stock in UiPath (NYSE:PATH), which had dropped sharply that day in the wake of its quarterly results. Wood reported that even after the sale, TSLA remains the largest holding in her portfolios.
Commenting on Bitcoin, Wood based her $500,000+ prediction on the assumption that institutional investors will start increasing their holdings of Bitcoin and other cryptocurrencies. Wood said she expected corporations to eventually diversify some of their cash holdings into crypto as well