Cathie Wood, the CEO of funding administration agency Ark Invest has touted her help for Bitcoin (BTC) by referring to the main cryptocurrency by market capitalization as a “flight to safety” asset.
Currency Devaluation and Bitcoin Price
In a dialog with Squawk Box CNBC host Andrew Ross Sorkin, Cathie was requested what her ideas are in direction of the rise within the value of Bitcoin which the trade noticed a few weeks again. At first, she acknowledged that spot Bitcoin ETFs have performed a important position in pushing the worth of the flagship digital asset to affordable ranges. Cathie additionally recognized forex devaluation as a new international menace in favor of BTC value.
According to Ark Invest CEO, Nigeria has been experiencing its native forex devaluation within the final 9 months, down by greater than 50%. She equally mentioned Egypt’s forex just lately devalued by 40% and the identical development applies to Argentina. For Cathie, all of those forex devaluations current Bitcoin as a flight to security particularly as residents of those international locations search a hedge towards the financial 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 defined.
Between March and May 2023, a couple of prime regional banks within the United States together with Silvergate Bank, Silicon Valley Bank, and Signature Bank crashed, owing to sure regulatory challenges. To underscore her opinion of BTC being a flight of security property, Cathie talked about that the worth of the coin reacted positively to those implosions by gaining 40%.
Spot Bitcoin ETF Success Reflects On BTC Price
As the Ark Invest CEO identified, spot Bitcoin ETFs have immensely influenced the worth of Bitcoin and different cryptocurrencies. Two days in the past, Coingape reported that the brand new product triggered a digital asset inflow of up to $862 million. It is price noting that Bitcoin hit its newest all-time high (ATH) on the time when the spot Bitcoin ETF market was recording enormous inflows.
Bitcoin halving is scheduled to occur later this month and this much-anticipated occasion can be anticipated to push Bitcoin value to new ranges. At the time of this writing, BTC was trading at $66,500.29 with a 1.72% surge up to now 24 hours. From the overall market outlook, that is arguably the primary notable twist to date this week.
The introduced content material might embrace the private opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty in your private monetary loss.
