Bitcoin Surges as a Safe Haven Amid Global Currency Depreciations, Says ARK Invest's Cathie Wood
Summary:
Cathie Wood, CEO of ARK Invest, says Bitcoin's (BTC) rising value serves as a safeguard against depreciating traditional currencies. This comes in an era where worldwide currency depreciations like the Nigerian naira and the Egyptian pound have gone unnoticed. Wood even suggests that Bitcoin can act as a safety net against unreliable regimes or poor fiscal and monetary strategies. However, recent data indicates that the fund encountered unusual net outflows of roughly $90 million due to quarterly adjustments.
Bitcoin's (BTC) value is experiencing a surge, serving as a refuge against the depreciating value of traditional currencies, opines Cathie Wood, CEO of ARK Invest. She voiced her views on Bitcoin, perceiving it as a dependable investment in times of volatility during an exchange with CNBC on April 3rd. While the introduction of exchange-traded funds (ETFs) by the United States in 2024 has boosted the awareness of Bitcoin, Wood believes there's another crucial element driving Bitcoin's worth.
In her opinion, in addition to granting institutions greater access to BTC, the ordinary populace is being offered a pivotal chance. Wood notes that certain worldwide currency depreciations fly under the radar, and references the diminishing value of currencies such as the Nigerian naira and the Egyptian pound against the U.S. dollar, brought about by conscious governmental actions rather than straightforward market influences.
Wood asserts that people are seeking refuge in BTC as a form of protection against the devaluation of their money, and to guard their spending power and wealth. During the interview, emphasis was placed on factors like the regional banking crisis in the U.S. from the previous year that sparked Bitcoin's price surge, alongside the 2013 Greek economic crisis. Wood concludes Bitcoin can serve as a safety net against regimes with questionable ethics or poorly conceived fiscal and monetary strategies.
Despite facing fierce competition from large-scale asset managers, Wood, as reported on Cointelegraph, has publicly endorsed Bitcoin through ARK's ETF this year. Recent data, however, indicates that the fund encountered unusual outflows amounting to roughly $90 million, which trader Daan Crypto Trades attributed partly to adjustments made quarterly. The data, provided by crypto data company Arkham, revealed early outflows from the Grayscale Bitcoin Trust (GBTC) — overshadowed by ARK's outflows on April 2 — reaching an estimate of $130 million.
Previously, Wood made a prediction that Bitcoin's worth would escalate to $1 million by 2030, largely due to a wave of new funding from institutions. She discerns that a large part of the prospective market remains untapped.
Remember, this article doesn't offer investment advice or endorsements, and all financial undertakings entail some risk that necessitates individual research prior to a decision.
Published At
4/3/2024 5:38:19 PM
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