Bitcoin rally tied to global currency devaluation
According to ARK Invest CEO Cathie Wood, Bitcoin’s remarkable 130% rally in the past year can be derived from the global devaluation of national currencies.
“There are currency devaluations taking place that people are not talking about,” Wood remarked in an interview with CNBC, highlighting significant drops in the value of currencies like the Nigerian naira and the Egyptian pound, among others.
Wood added that during these volatile financial times, Bitcoin (BTC) has emerged as a digital asset and a potential safeguard against economic instability. The ARK Invest CEO described Bitcoin as an insurance policy against rogue regimes and horrible fiscal and monetary policies.
Wood’s perspective was further reinforced by the demand for spot Bitcoin ETFs in the U.S., signaling a broader acceptance and integration of this digital currency into the financial mainstream. The ARK 21Shares Bitcoin ETF took the helm on March 28, setting a record $243.5 million daily inflow, further showing the interest and demand for Bitcoin on the institutional level.
Cathie Wood’s Bitcoin forecast
Wood’s optimism about Bitcoin’s future remains undiminished, as evidenced by her $1.5 million price target. She says she views Bitcoin as a “financial super highway,” devoid of counterparty risk and uniquely positioned 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 further exemplified by her reflections on its performance during regional banking crises in the United States.
She stated, “Bitcoin does not have counterparty risk,” recalling the asset’s surge in value during the banking turmoil in early 2023.
In a September post, Wood also opined on the intersection of Bitcoin and AI.
She said, “The convergence between Bitcoin and AI could transform the way companies organize, causing a collapse in costs and an explosion in productivity.”
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