Cathie Wood: Bitcoin Could Replace Gold as Preferred Safe-Haven Asset
Cathie Wood, CEO of ARK Invest, has expressed her belief that Bitcoin has the potential to surpass gold as the go-to safe-haven asset. In a YouTube update, Wood highlighted how Bitcoin outperformed during a regional bank crisis in March, experiencing a 40% price increase while the regional bank index struggled.
Wood sees this trend repeating itself as Bitcoin gains momentum while the regional bank index faces volatility. Many now view Bitcoin as a “flight to quality” asset.
The recent dip in Bitcoin’s price following the introduction of 11 ETFs was attributed by Wood to a cycle of anticipatory buying and subsequent selling. However, she presented data showing Bitcoin’s long-term uptrend against gold, suggesting it could replace gold for some investors.
Bitcoin’s Future as an Asset
The launch of spot Bitcoin ETFs has facilitated a shift from gold to Bitcoin among investors. Wood believes this is due to its role as a “risk off asset” during banking sector instability.
Despite a price correction after the spot Bitcoin ETF launch, the long-term outlook for Bitcoin remains positive. Wood noted that a significant portion of Bitcoin is held by long-term investors.
In a podcast discussion with Merryn Somerset Webb, Wood expressed her conviction in Bitcoin’s potential as a deflation hedge over the next decade. She sees it as “digital gold” with no counterparty risk and increasing popularity among institutional investors.
Analysts have also observed an increased correlation between Bitcoin and gold in 2023, solidifying its position as a reliable component of investment portfolios amid global rate hikes.
Hot Take: Cathie Wood Believes Bitcoin Will Outshine Gold
Cathie Wood, CEO of ARK Invest, is confident that Bitcoin will surpass gold as the preferred safe-haven asset. She points to Bitcoin’s performance during a regional bank crisis, where it outperformed the struggling regional bank index. Wood believes this trend is recurring as Bitcoin gains momentum and the regional bank index faces volatility. Despite a recent price dip due to ETF introductions, Wood presented data showing Bitcoin’s long-term uptrend against gold. This suggests that Bitcoin could eventually replace gold for some investors. Wood also highlighted the shift from gold to Bitcoin facilitated by spot Bitcoin ETFs. She sees Bitcoin as a “risk off asset” during banking sector instability, solidifying its evolving role in financial markets.
By
By
By
By
By