ARK Invest Chief Executive Officer (CEO) and Chief Information Officer (CIO) Cathie Wood, has expressed her optimism about Bitcoin’s capabilities to probably rise above gold, referring to the cryptocurrency as ‘the digital gold.’
Bitcoin Versus Gold
Appearing in a current interview on ARK Invest’s official YouTube channel, Wood and ARK Invest’s Chief Futurist, Brett Winton, delved into a prolonged dialogue about Bitcoin’s historic and most up-to-date value actions in relation to gold.
Describing Bitcoin as each a “store of value” and a “risk off asset,” Wood emphasised the cryptocurrency’s notable rise, notably when compared to gold. She shared a chart illustrating a Bitcoin to gold value ratio which revealed a sturdy and sustained upward pattern for Bitcoin. This upward trajectory hints at the potential of the cryptocurrency overtaking gold as a extra helpful funding sooner or later.
Wood additionally mentioned Bitcoin’s performance amid previous financial crises. She highlighted a historic value sample noticed throughout the regional bank crisis in March 2023, noting that Bitcoin rose as excessive as 40% whereas the regional financial institution index, represented by KRE, was imploding.
Currently, the regional financial institution index is experiencing an analogous disaster, and in accordance with Wood, Bitcoin is following the identical sample by sustaining a gentle ascent. She attributes this uptrend to the approval and introduction of 11 Spot Bitcoin ETFs into the cryptocurrency market.
As a consequence, Wood has categorized Bitcoin as a “flight to safety” funding asset, offering an area for people to retailer their funds in opposition to inflation and the results of the economic crisis.
Spot Bitcoin ETFs Expected To Fuel Bitcoin Surge
After the approval and launch of Spot Bitcoin ETFs on January 10, 2024, Bitcoin confronted an sudden decline, relinquishing a good portion of the positive factors amassed throughout the pre-approval pleasure. The cryptocurrency dropped from a 2023 all-time excessive of over $45,000 to under $40,000.
Wood defined that Bitcoin’s descent after the introduction of ETFs resulted from intense anticipatory shopping for earlier than the launch of ETFs, with a subsequent “sell on the news” event pushed by opportunistic merchants.
Looking forward, the ARK Invest CEO anticipates Bitcoin’s continued rise, propelled by the broader accessibility facilitated by Spot Bitcoin ETFs. She highlighted that Spot Bitcoin ETFs provided a neater and extra inclusive avenue to entry Bitcoin, attracting substantial inflows into the cryptocurrency as institutional buyers actively take part out there.
BTC drops under $43,000 as soon as once more | Source: BTCUSD on Tradingview.com
Featured picture from Seeking Alpha, chart from Tradingview.com
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