Cathie Wood: Bitcoin Serves as a Safeguard against ‘Dreadful’ Government Fiscal Measures

Bitcoin’s recent rise in value can be attributed to its role as a safe haven against devaluing fiat currencies, according to Cathie Wood, the CEO of ARK Invest. In an interview with CNBC, Wood described Bitcoin as both a risk-on and risk-off investment. While the introduction of new exchange-traded funds (ETFs) in the United States has contributed to the mainstream narrative surrounding Bitcoin, Wood believes that the devaluation of fiat currencies is a crucial factor driving its price. She pointed out the decline in value of currencies like the Nigerian naira and Egyptian pound against the U.S. dollar, which resulted from deliberate government interventions rather than market forces. Wood sees Bitcoin as a flight to safety in such circumstances. She also mentioned past events like the U.S. regional banking crisis and the Greek financial crisis as instances where Bitcoin acted as an insurance policy against unfavorable fiscal and monetary policies. Despite ARK’s ETF product competing with major asset managers, Wood remains a strong supporter of Bitcoin. However, the fund experienced unusual net outflows of nearly $90 million this week, potentially due to quarterly rebalancing flows. Wood previously predicted that Bitcoin could reach a price of $1 million before 2030, primarily driven by institutional investments. This article does not provide investment advice and readers should conduct their own research before making any financial decisions.