Cathie Wood, CEO of ARK Invest, suggests that Bitcoin’s sharp price rise this year is not solely due to the introduction of Bitcoin ETFs. Instead, she argues that Bitcoin is gaining traction as a “flight to safety” amid concerns about declining fiat currencies.
In an interview with CNBC shared on April 3, Wood emphasized that Bitcoin serves as both a risky and risk-off investment. She emphasized the importance of fiat currency devaluation as a driving force behind the Bitcoin price surge.
While exchange-traded fund (ETF) launches are gaining attention, Wood believes the broader global economic environment is playing a pivotal role. She pointed to instances of currency devaluation, such as that observed in the Nigerian naira and the Egyptian pound, which lost significant value against the US dollar due to deliberate government intervention rather than market forces.
Wood characterizes Bitcoin as a hedge against devaluation and loss of purchasing power, and positions it as an insurance policy against adverse fiscal and monetary policies adopted by governments. She drew parallels with previous financial crises, including the 2023 US local banking crisis and the 2013 Greek financial crisis, highlighting Bitcoin’s role as a safeguard against adverse economic conditions.
ARK’s ETF products compete with those of major asset managers, but recent data showed unusual net outflows of nearly $90 million. Wood attributed this to quarterly rebalancing flows and remained optimistic about Bitcoin’s long-term prospects, predicting a price target of $1 million by 2030, driven by institutional adoption.
Despite the fluctuations in money flows, Wood remains bullish on Bitcoin, emphasizing its value proposition as a hedge against government fiscal policy and currency devaluation.
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