Cathie Wood, the CEO of investment management firm Ark Invest has touted her support for Bitcoin (BTC) by referring to the leading cryptocurrency by market capitalization as a “flight to safety” asset.
Currency Devaluation and Bitcoin Price
In a conversation with Squawk Box CNBC host Andrew Ross Sorkin, Cathie was asked what her thoughts are towards the rise in the price of Bitcoin which the industry saw a few weeks back. At first, she acknowledged that spot Bitcoin ETFs have played a significant role in pushing the price of the flagship digital asset to reasonable levels. Cathie also identified currency devaluation as a new global menace in favor of BTC price.
According to Ark Invest CEO, Nigeria has been experiencing its local currency devaluation in the last nine months, down by more than 50%. She equally said Egypt’s currency recently devalued by 40% and the same trend applies to Argentina. For Cathie, all of these currency devaluations present Bitcoin as a flight to safety especially as residents of these countries seek a hedge against the economic meltdown.
“I think this is a flight to safety, believe it or not, taking place. A hedge against devaluation. A hedge against loss of purchasing power and wealth,” Cathie Wood explained.
Between March and May 2023, a couple of top regional banks in the United States including Silvergate Bank, Silicon Valley Bank, and Signature Bank crashed, owing to certain regulatory challenges. To underscore her opinion of BTC being a flight of safety assets, Cathie mentioned that the price of the coin reacted positively to these implosions by gaining 40%.
Spot Bitcoin ETF Success Reflects On BTC Price
As the Ark Invest CEO pointed out, spot Bitcoin ETFs have immensely influenced the price of Bitcoin and other cryptocurrencies. Two days ago, Coingape reported that the new product triggered a digital asset inflow of up to $862 million. It is worth noting that Bitcoin hit its latest all-time high (ATH) at the time when the spot Bitcoin ETF market was recording huge inflows.
Bitcoin halving is scheduled to happen later this month and this much-anticipated event is also expected to push Bitcoin price to new levels. At the time of this writing, BTC was trading at $66,500.29 with a 1.72% surge in the past 24 hours. From the general market outlook, this is arguably the first notable twist thus far this week.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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