ARK Invest CEO Cathie Wood attributed the massive rise of Bitcoin (BTC) to national currency devaluations around the world. Bitcoin has surged a staggering over 130% in the last 12 months, reaching an all-time high of $73,800 last month. This surge coincided with a wave of demand from spot Bitcoin ETFs in the United States.
In an interview with CNBC, Wood offered a different explanation, describing Bitcoin as “an insurance policy against rogue regimes and terrible fiscal and monetary policies.” “There are other things happening around the world, currency devaluations that people don’t talk about,” Wood said.
Wood underlined that the Nigerian naira has lost 50% to 60% of its value in the last nine months. Wood also noted Egypt’s recent 40% devaluation and Argentina’s ongoing devaluation. “I think there’s a hedge against devaluation, a hedge against loss of purchasing power and wealth, an escape to safety,” she added.
Two weeks ago, Wood reiterated his ambitious $1.5 million price target for Bitcoin, calling it a “financial superhighway.” “We saw this in the United States last year, regional banks collapsed, Bitcoin increased by 40%,” Wood reminded. She stated that Bitcoin does not carry counterparty risk, therefore it is both a risky and risk-free asset. “I remember we bought BTC at $250 when Greece was threatening to abandon the Euro,” she recalled.
*This is not investment advice.
Cathy Wood is a “she”