Bitcoin opposes ‘scary’ government fiscal policy – Kathy Wood

Bitcoin opposes 'scary' government fiscal policy - Kathy Wood


Bitcoin (BTC) has risen because it is a “flight to safety” in the face of falling fiat currencies, says Cathy Wood, CEO of ARK Invest.

In an interview with CNBC on April 3, shared online, Wood described BTC as both a risky and risky investment.

Wood suggests the BTC price driving the fiat devaluation

The United States' new exchange-traded funds (ETFs) may have driven the dominant narrative around Bitcoin in 2024, but for ARK's Wood, there's another key factor at play.

Betfury

While institutions are finally getting much-needed exposure to BTC, regular citizens are being given a more valuable opportunity.

“There's something else going on around the world,” she said.

Currency crashes are happening that people aren't talking about.

Wood cited the performance of currencies such as the Nigerian naira and the Egyptian pound, both of which have lost about half their value against the US dollar in recent months.

In these and other cases, it was deliberate government intervention, not direct market forces, that caused exchange rates to depreciate.

“I think it's a safety flight, I believe, it's going on,” Wood continued.

“A hedge against devaluation, a hedge against loss of purchasing power and wealth.”

The interview brought up last year's US regional banking crisis and the 2013 Greek financial crisis, which caused BTC's price to rise.

“I think this is an insurance policy against rogue regimes or brutal fiscal and monetary policies,” Wood concluded.

More to Bitcoin than ETFs

As Cointelegraph continues to report, Wood continues his public support of Bitcoin as ARK's ETF product goes head-to-head with the world's largest asset managers this year.

RELATED: Bitcoin Traders Ignore Silk Road Selloff As BTC Price Rises To $66.5K

But this week, the fund saw a net outflow of nearly $90 million.

“I guess it has to do with balancing the flow every quarter,” noted trader Dan CryptoTrades said in his response to X.

Data from crypto intelligence firm Arkham revealed withdrawals from Grayscale Bitcoin Trust – which ARK exits on April 2 – around $130 million.

Source: Daan Crypto Trades

In March, Wood predicted a BTC price of $1 million before 2030, mainly due to new institutional money flows. Most of the target market is not yet tapped in, she added.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.

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