In a recent interview with CNBC, Cathie Wood, CEO of ARK Invest, said that the falling value of national currencies worldwide was the reason for Bitcoin’s amazing 130% rise over the past year.
Wood said the significant drops in the value of currencies like the Egyptian pound and the Nigerian naira were signs of this trend. He suggested that this is an under-discussed factor helping Bitcoin’s rise.
It was important for Wood that Bitcoin became a digital asset during financial instability because he saw it as a possible way to protect against economic uncertainty. Wood talked about Bitcoin’s value as a safety net during uncertain times, calling it an “insurance policy” against bad monetary and fiscal policies and even rogue governments.
Cathie Wood on Bitcoin ETF Acceptance
The increasing interest in spot Bitcoin exchange-traded funds (ETFs) in the U.S. supports her view and shows that the digital currency is becoming more accepted in the financial world. When the ARK 21Shares Bitcoin ETF opened for business on March 28, it received a record-high $243.5 million daily. This shows that institutions are interested in and want Bitcoin.
Wood is still very optimistic about Bitcoin’s future, and her price goal of $1.5 million shows that. She calls Bitcoin a “financial superhighway” and points out that it has no partner risk and is the only asset that can be both “risk on” and “risk off.”
Wood talked about how Bitcoin has handled regional banking crises in the US and stressed how resilient it is and how it doesn’t have counterparty risk. She remembered its rise in value during the trouble in the banking sector at the beginning of 2023 as proof that it could be used as a hedge.
Furthermore, Wood has previously looked into the areas where Bitcoin and artificial intelligence (AI) overlap, saying that this could completely change how businesses are run, resulting in lower costs and higher output. According to Wood’s ideas, this intersection could be a way for radical innovation.
As investors and financial analysts continue to pay attention to Bitcoin, Wood’s views shed light on the complex factors leading to its rise and how it might help people navigate uncertain economic environments.
Cathie Wood says that global currencies are falling in value, institutions are adopting Bitcoin, and new technologies are being developed, showing how important Bitcoin is in today’s financial system.
