Cathie Wood’s Next Strategy for Bitcoin, Tesla and AI

by James · February 18, 2023

Many market leaders, such as Tesla CEO Elon Musk and Ark Invest CEO Cathie Wood, criticized the US central bank for continuous interest rate increases that weaken market conditions and risk recession. A slowdown in rate hikes by the US central bank this year has triggered bullish sentiment in global markets.

Cathie Wood on Saturday so growth stocks and innovation-based strategies will regain lost gains as the “brutal rate hike” by the US Federal Reserve nears its end.

“ARKInvest has an investment time horizon of five years. Now that the most brutal rate hike in history is coming to an end, growth stocks in general and innovation-based strategies in particular should make up for lost time.”

Ark Invest is buying heavily Coinbase (COIN) and Tesla (TSLA) shares from low as part of its active equity management strategy. On February 14, Ark Invest bought a total of 14,636 Coinbase (COIN) shares when the share price fell below $58. Cathie Wood predicts that Tesla stock will reach $1,500 within the next five yearswhich marks an increase of 675%.

Furthermore, she noted that many Wall Street investors including Charlie Munger lack an understanding of the lower costs associated with technology-enabled innovation. The statement came afterwards Charlie Munger said he prefers to invest in Warren Buffett-backed BYD over Tesla.

Ark Invest invests mostly in technology stocks. Ark Invest believes that artificial intelligence (AI) creates the assembly line for knowledge workers. Cathie Wood tweeted:

“Think of AI as the assembly line for knowledge workers! About 100 years ago, the assembly line turbocharged the industrial revolution. Today, AI is turbocharging the digital revolution, not only for businesses, but also for consumers.”

Ark Invest believes AI will increase knowledge worker productivity more than 4x by 2030. At 100% adoption, AI could increase global labor productivity by nearly $200 trillion, dwarfing $32 trillion in total knowledge worker wages.

Also read: Top 5 AI Crypto Tokens and Projects Ready to Take Off in 2023

Cathie Wood is Bullish on Bitcoin

Cathie Wood reiterated her bullish stance on Bitcoin, predicting that the BTC price will reach $1 million by 2030. She also believes that Bitcoin can help countries plagued by inflation, like an insurance policy.

Considering Cathie Wood’s previous prediction in AI and decline in Tesla and Coinbase shares, the Bitcoin price reaching $1 million by 2030 may come true. However, the $100K BTC price is most likely to happen by late 2023 or early 2024.

Also read: Bitcoin price remains bullish to hit $30,000, on-chain data and crypto analyst predicts

Varinder Singh

Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by Disruptive Technologies, he has shared his knowledge of Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a significant period of time and currently covers all the latest updates and developments in the crypto industry.