Bitcoin Follows the U.S. Stock Market, Ark Invest’s Cathie Wood: Currency Depreciation Ignored, Bitcoin as a Safe Haven

CNBC interviewed Cathie Wood, the founder of Ark Investment, yesterday (4/3) regarding the recent sharp decline in Bitcoin. The host mentioned that Bitcoin surged to $70,000 and then fell to $60,000, similar to the fluctuations in the US stock market, indicating vulnerability to liquidity and speculative behavior.

Apart from ETFs, the issue of currency depreciation has been overlooked.

Cathie Wood stated that besides the impact brought by the Bitcoin spot ETF, people have overlooked the issue of currency depreciation. She pointed out that the currencies of Nigeria, Egypt, and Argentina are experiencing severe depreciation. She believes that Bitcoin serves as a safe haven and can act as a hedge against currency depreciation, preventing the erosion of purchasing power and wealth.

She also believes that the local banking crisis in the United States last year led to a more than 40% increase in Bitcoin.

“Bitcoin has no counterparty risk,” she said.

Cathie Wood believes that Bitcoin is a Risk-On asset (investors entering without fear of risk), but it is also a Risk Off asset (behavior of fleeing from risky assets). She cited the example of entering during the Greek crisis in the past. She believes that Bitcoin is an insurance strategy against poor fiscal policies.

Cathie Wood
ETF
Safe haven
Bitcoin

Further reading
SEC calls for public opinion on Ethereum ETF, lasting for 21 days
Goldman Sachs CIO: Bitcoin is not an asset, and crypto finance has never been democratized