She stated on Wednesday that between 50 and 65 percent of bitcoin mining occurs in China, noting that it is a “healthier phenomenon to disperse” some of the mining. This includes relocating some production to the United States and incorporating a greater proportion of renewable energy into bitcoin generation.
“Bitcoin mining will most likely become a part of utility ecosystems, proliferating renewables faster than would otherwise be the case,” she says, adding, “we’re pretty excited about that.”
Ark Invest filed with the Securities and Exchange Commission at the end of June to establish its own bitcoin exchange-traded fund. According to the filing, the fund’s investment goal is to track the performance of the digital currency.
It remains to be seen whether the fund will be approved by regulators. SEC Chairman Gary Gensler has called for increased regulation of cryptocurrency exchanges as well as investor protection. Ark is the latest company to announce plans for a bitcoin ETF, but it is not the only one; at least eight other bitcoin funds have been proposed.
On Wednesday, bitcoin was trading around $32,848 per coin, well below its all-time high of more than $60,000. Recent price increases have also been influenced by environmental concerns.
Tesla CEO Elon Musk announced in May that the company would no longer accept bitcoin payments for car purchases due to environmental concerns.
Wood, on the other hand, contends that bitcoin appears to be appealing from an ESG standpoint, referring to environmental, social, and governance factors. “In terms of ESG governance with transparency, there could be nothing better than bitcoin,” she said. On the “S” front, she stated that cryptocurrency enables economic empowerment, while a shift to renewable energy is underway in terms of environmental impact.
“The bitcoin community is very concerned about the environment,” Wood said.
According to Digiconomist, bitcoin emits 36.95 megatons of CO2 per year, giving it an environmental footprint comparable to that of New Zealand.
The bitcoin chart
“Then it went insanely high” to more than $60,000 this year, according to Gundlach. “Right now, the Bitcoin chart appears to be quite frightening. It’s been marked down from $60,000 to around $31,500, and it appears to be a massive head-and-shoulders top.”
Technical analysts have pointed to the recent head-and-shoulders trading pattern — in which the price rises to a high and then falls to the price that was the base of the previous upward move — as evidence that bitcoin could fall even lower than $23,000, with some estimating $20,000.
According to Coin Metrics, Bitcoin traded around $31,200 on Thursday as it tested a key support level — or a lower price at which investors are still willing to purchase an asset.
Analysts believe bitcoin is a good long-term story with a bad short-term chart, but Gundlach has stated that he will not own it.
“I still believe bitcoin is highly speculative and volatile,” he said, adding.
“I would not own bitcoin right now; I believe there is enough opportunity to buy at a lower price, as is the case with many speculative assets,” he added.