Cathie Wood Links Bitcoin Surge to Devaluation of Global Currencies
Bitcoin’s impressive 130% rally over the past year can be attributed to the devaluation of national currencies worldwide, according to Cathie Wood, CEO of ARK Invest. Wood pointed out that there are significant drops in the value of currencies like the Nigerian naira and the Egyptian pound, which are often overlooked. In times of financial volatility, Bitcoin has emerged as a digital asset and a potential hedge against economic instability. Wood described Bitcoin as an insurance policy against rogue regimes and poor fiscal and monetary policies. The demand for spot Bitcoin ETFs in the U.S. further supports Wood’s perspective, indicating a growing acceptance and integration of this digital currency into the financial mainstream. The ARK 21Shares Bitcoin ETF, launched on March 28, set a record with a daily inflow of $243.5 million, demonstrating the institutional interest and demand for Bitcoin. Wood remains optimistic about Bitcoin’s future, setting a price target of $1.5 million. She views Bitcoin as a “financial superhighway” that is free from counterparty risk and serves as both a “risk on” and “risk off” asset. Wood’s confidence in Bitcoin’s resilience and potential as a hedge against financial uncertainty is reinforced by its performance during regional banking crises in the United States. Bitcoin’s lack of counterparty risk was evident during the banking turmoil in early 2023, where its value surged. Wood also believes that the convergence of Bitcoin and AI could revolutionize the way companies operate, leading to cost reductions and increased productivity.
