Cathie Wood, CEO of ARK Investment Management, predicts increased institutional adoption of bitcoin, fueled by its performance during the current banking crisis in the United States. Anticipating a diversification of institutional portfolios towards bitcoin, Wood argues that this cryptocurrency could well dethrone gold as a safe haven.
Bitcoin: Towards an eclipse of Gold?
Cathie Wood, CEO of ARK Investment Management, predicted increased institutional adoption of bitcoin in March 2023. The US banking crisis motivated this prediction, as BTC performed well during this period. Wood expects institutions to diversify their portfolios by investing in bitcoin, following the precedent set with other assets. This anticipation is supported by the observation that bitcoin reacted differently from stock markets during the crisis, providing an alternative option for institutional investors.
In a resounding speech broadcast on YouTube, and relayed by Daily HodlCathie Wood, the flamboyant CEO of ARK Invest, declares that the Bitcoin, the queen of cryptocurrencies, could well dethrone gold as the preferred safe haven. According to her, during the tumult of the banking crisis last year, BTC brilliantly soared by 40% while the regional bank index faltered.
This trend, called “ flight to quality » by Wood, suggests that investors take refuge in Bitcoin during times of economic uncertainty. However, the introduction of 11 Bitcoin ETFs temporarily shook the market, a phenomenon interpreted by Wood as simply a reaction to Sell-on-the-News.
Illustrating his words with a graph, Wood highlights the upward trend of Bitcoin against gold, insinuating a possible relegation of the yellow metal to the background. She also mentions the increasing ease of access to BTC and the reduction in barriers to its acquisition, thus promoting its adoption.
“ So the idea that this is a flight to quality or a flight to safety really comes into play here. The reason we think bitcoin fell after the introduction of ETFs is because there was lots of early buying before ETF release. There was a bit of ‘sell-on-the-news’these are the types of traders who are very opportunistic in this way,” she insisted.
Towards promising heights of $1.5 million
Cathie Wood, prominent CEO of ARK Invest, predicts Bitcoin reaching $1.5 million by 2030. This bold prediction, announced during a recent intervention on CNBC, arouses passions and fuels debates in the world of finance.
Although the recent post-launch correction of Bitcoin ETFs has shaken the market, Wood remains confident, noting that the majority of Bitcoin in circulation appears to be in “strong hands” and not held by opportunists. With the SEC’s approval for spot ETFs, Bitcoin may well be on its way to a bull run. And why not a new ATH of $1.5 million?
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