Lead fund manager Cathie Wood spoke at the Consensus 2021 event organized by CoinDesk. Wood discussed the reasons for Bitcoin’s significant decline recently.
“Many institutional acquisitions have stalled due to concerns about the environmental impact of Bitcoin mining , ” Wood said in his speech . According to him, the ESG movement (environmental, social and managerial issues) and Elon Musk caused Bitcoin’s decline.
Cathie Wood, founder of ARK Investment Management, said that Bitcoin, which has recorded 50% of its value in the past few weeks, is under pressure from institutional investors concerned about the environmental profile of Bitcoin:
“This idea, exacerbated by the ESG [environmental, social and governance questions] movement and Elon Musk, was accelerated by the idea that there are some real environmental problems in Bitcoin mining.”
After Tesla announced that he would add Bitcoin to his balance sheet and accept Bitcoin for payments, Musk, who revived the markets, later announced that he stopped the payments and reversed his course, which brought prices down significantly.
“Elon has probably received a few calls from institutions , ” Wood said. “I realized that BlackRock is [Tesla]’s number three shareholder and Larry Fink is the CEO. Focused on ESG and especially on climate change. I’m sure BlackRock has logged some complaints and there may be some very large business owners in Europe who are extremely sensitive about this.”
Despite all these negative developments, Wood seems confident about the future of Bitcoin, which her describes as the “global monetary system” . she recently reiterated his $ 500,000 price target for Bitcoin in an interview with Bloomberg.
Fund managers also for central banks ‘balance sheets crypto money would begin buying units and Musk Bitcoin ‘ s predicts he will prove to be positive in the long term by improving the environmental profile for the Bitcoin:
“Musk encouraged much more talking, much more analytical thinking. And I believe he will be a part of the process.”