Here’s Why Cathie Wood Says Bitcoin Could Explode By Over 3,500% From Current Levels
By Benzinga
Ark Investment Management CEO and Founder Cathie Wood says that she is confident Bitcoin (CRYPTO: BTC) will hit seven figures and that her $1 million target for the cryptocurrency will be realized soon.
In an interview with Bloomberg earlier this week, Wood said that the prevailing global economic environment is raising her confidence in Bitcoin.
“The more uncertainty and volatility there is in the global economies, the more our confidence increases in Bitcoin. And one of the reasons is we have just been through an inflationary scare. We think it was very much supply-chain driven, and Bitcoin was/is a hedge against inflation,” Wood said.
According to Wood, a deflationary macroeconomic environment is looming, and BTC could have another purpose beyond acting as a buffer against inflation.
“On the Bitcoin blockchain, everything is transparent and maybe pseudo-anonymous. But we can see all the transactions and activity, and therefore, we have a much better understanding of how little counterparty risk there is in the blockchain world,” she added.
Wood said that the more significant risk presently is deflation, not inflation. “Why would Bitcoin do well in that circumstance? It would do well because it’s an antidote to counterparty risk in the traditional financial system,” Wood said.
Last week, ARK Investment bought a significant stake in Coinbase Global Inc (NASDAQ:COIN). The investment management firm bought over 419,000 shares at an estimated valuation of over $21.6 million.
An avid advocate of Bitcoin, Wood previously said that the crypto king would have a significant influence on the presidential elections in 2024. She also said, at one point, that regulatory uncertainty in the U.S. has had a negative impact on crypto innovation in the country. She noted that, because of the lack of regulatory clarity, crypto innovation appears to be shifting toward more friendly regimes overseas.
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