Christopher Wood’s decision to hold on to his Bitcoin investments despite its rising price reflects a broad belief in the cryptocurrency’s long-term potential.
Bitcoin is making an impressive upward move, recently approaching $100,000. As of today, the price of one Bitcoin is $98,675.62, a significant increase of 7% over the past week. The surge followed a global market rally that began with Donald Trump’s surprise victory in the US presidential election and continued through 2024. Notably, among the investors benefiting from this boom is Christopher Wood, global head of equity strategy at Jefferies. Despite the massive increase in bitcoin’s value, Wood is unwilling to sell his holdings, even at nearly $100,000 per coin. So, why does it hold up?
Wood’s Bitcoin Investment Strategy
Wood, who is known for his bullish stance on various assets, has a long-term vision for Bitcoin. He has a significant portion of investments in cryptocurrencies through a US dollar-denominated pension fund portfolio, including 10% in Bitcoin. Interestingly, when the fund first bought Bitcoin in December 2020, the cryptocurrency was worth just $22,779. This represents a huge paper gain of over 300% on that original investment. Despite Bitcoin’s impressive growth, Wood has expressed that he wants to hold his position until the price reaches $150,000, which he believes is the right level to take profits.
In a recent note titled “Greed and Fear,” Wood asserted that $150,000 per bitcoin would be the target price at which he would begin to consider selling some of his holdings. His decision to hold on to Bitcoin even as it nears $100,000 is at the core. He believes that cryptocurrencies will continue to rise due to a number of factors, including expected regulatory changes in the US.
Wood believes in Bitcoin’s continued growth
One of the main reasons behind Wood’s decision to stay invested in Bitcoin is his belief that regulatory changes in the US will support further appreciation of the cryptocurrency. Wood points to statements made by Donald Trump, who as former president hinted at possible changes to US crypto regulation, particularly by the Securities and Exchange Commission (SEC). Wood is particularly optimistic about the involvement of Howard Lutnick, a prominent figure in Trump’s transition team and a well-known crypto supporter, who could influence policy changes in favor of digital assets.
Wood’s strategy contrasts with many traditional investors who remain wary of bitcoin’s volatility. However, Wood believes digital assets will continue to benefit from favorable regulatory shifts, especially as more institutions and governments begin to embrace blockchain technology and cryptocurrencies.
Bitcoin’s exceptional return over the past year
Over the past one year, Bitcoin has given extraordinary returns to its investors with an increase of 164%. A year ago, the price of one bitcoin hovered around $37,000; Today, it is nearly triple the value. This dramatic increase has made Bitcoin an attractive investment option for both retail and institutional investors looking for higher returns. Despite this, Wood is not yet ready to cash out, certain that the price may rise even further in the near future.
While some investors may see Bitcoin’s surge as a sell signal, Wood maintains that there is still room for growth. His target price of $150,000 reflects his belief in Bitcoin’s long-term potential, even if it remains volatile in the short-term.
Bitcoin Vs. Gold: Wood’s Perspective
Despite Bitcoin’s success, Wood is not of the opinion that Bitcoin will replace gold as the world’s primary store of value. While Bitcoin has risen significantly, gold has also seen strong returns in 2023, with gains of 73% against the yen, 54% against the renminbi and 40% against the euro. Gold’s performance is outperforming many traditional assets, and Wood doesn’t foresee bitcoin overtaking gold anytime soon.
Still, Christopher Wood’s decision to hold off on his investments despite Bitcoin’s significant rise shows a broad belief in the cryptocurrency’s long-term potential. While the asset has already proven to be a highly profitable investment, Wood sees more upside ahead due to expected regulatory changes and growing institutional interest. For now, he’s being patient, waiting for bitcoin to reach $150,000 before cashing out — a goal that, in his view, is still within reach.