Bitcoin is still struggling to hit the $40,000 mark following the flash crash/massive sell-off on March 23 of this year.
Bitcoin has been on a downtrend for almost 2 weeks now and although there are some signs of recovery, there’s still a lot of uncertainty. The downward spiral started when Tesla’s CEO, Elon Musk suspended bitcoin payments citing its fossil fuel energy consumption and China’s crackdown on cryptocurrency sector was the nail in the coffin. It not only triggered crypto market sell off but also had a negative impact on global indices.
On a positive note, Cathie Wood (CEO of Ark Invest) has set a price target of $500,000 over the long term.
“You never know how low is low when a market gets very emotional,” Wood said, when Bitcoin slumped below $40,000.
“We were looking at all the indicators this morning. They are all suggesting that we are in the capitulation phase, which is a really great time to buy, no matter what the asset is. A capitulation phase is buy, it’s on sale,”Cathy Wood, CEO Ark Invest
She also added that this may represent a solid buying opportunity.