Cathie Wood: Bitcoin Poised to Replace Gold as Store of Value
Cathie Wood, CEO of Ark Invest, believes that Bitcoin is on the verge of replacing gold as a store of value asset. She argues that Bitcoin’s growing adoption and accessibility make it more appealing to the public than gold. Since the introduction of spot ETFs on cryptocurrencies, US investors have been shifting their investments from gold to Bitcoin, anticipating significant appreciation in the future. Despite recent analysis suggesting a more advantageous situation for gold, Wood remains convinced of the resilience and potential of Bitcoin.
Bitcoin’s Resilience During Banking Crisis
Wood points to Bitcoin’s strong performance during the regional banking crisis in March 2023 as evidence of its safety as an asset during market risks. While US regional banks were struggling, Bitcoin’s value increased. Although gold has also met investors’ expectations by acting as a safe haven and quickly recovering new highs after the 2022 bearish market, its correlation with Bitcoin has exponentially increased since 2022.
Ark Invest CEO Predicts $1.5 Million Bitcoin Price by 2030
Wood has been consistently optimistic about Bitcoin’s future. According to ARK’s report, they recommended investors allocate 19.4% of their portfolio to Bitcoin for maximum returns. Wood predicts a base scenario price above $600,000 by 2030 and an incredible price of $1.5 million in the next six years if favorable conditions continue for the crypto sector. She is significantly more bullish on Bitcoin than gold. Ark Invest has already started offering exposure to Bitcoin through its ARK 21Shares Bitcoin (ARKB) spot ETF.
Spot ETF Launch and Future Outlook
Wood was not surprised by the 20% price crash that occurred after the launch of spot ETFs. She expected a “sell the news” event with a temporary bearish momentum. However, she remains confident that Bitcoin will reach new highs in the coming months, as long-term investors continue to hold a majority of circulating Bitcoins. Out of the 19.5 million BTC in circulation, 15 million have not moved in the last 155 days.
Hot Take: Bitcoin’s Potential as a Store of Value
Cathie Wood’s belief that Bitcoin is on the path to replacing gold as a store of value highlights the growing adoption and appeal of the cryptocurrency. With US investors shifting their investments from gold to Bitcoin, there is a sense of anticipation for significant appreciation in the future. While gold has acted as a safe haven and recovered from market downturns, Bitcoin’s resilience during crisis situations and its correlation with gold showcase its potential as a safer asset. Wood’s bullish predictions for Bitcoin’s price further emphasize her confidence in its future growth and value.
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