CNBC interviewed Cathie Wood, the founder of Ark Invest, yesterday (4/3), regarding the recent sharp decline in Bitcoin. The host pointed out that Bitcoin surged to 70K and then dropped to 60K, similar to the volatility of the U.S. stock index, indicating its susceptibility to liquidity and speculative behavior.
Apart from ETFs, the issue of currency depreciation has been overlooked.
Cathie Wood stated that besides the impact brought by Bitcoin spot ETFs, people have overlooked the issue of currency depreciation. She mentioned that the currencies of Nigeria, Egypt, and Argentina are experiencing severe depreciation. She believes that Bitcoin serves as a safe haven, acting as a hedge against currency depreciation and preventing the loss of purchasing power and wealth.
She also believes that Bitcoin’s surge of over 40% was influenced by the local banking crisis in the United States last year.
“Bitcoin has no counterparty risk,” she said.
Cathie Wood believes that Bitcoin is a Risk-On asset (investors entering the market without fear of risk), but it is also a Risk Off asset (an act of fleeing from risky assets). She cited the example of entering the market during the Greek crisis in the past. She sees Bitcoin as an insurance strategy to cope with poor fiscal policies.
Cathie Wood
ETF
Safe haven
Bitcoin
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