- Cathie Wood from Ark Invest believes that Bitcoin
will replace gold among safe-haven assets more rapidly than anticipated.
- Wood recalls a pattern observed during the regional banking crisis in March 2023, where Bitcoin’s price exhibited a significant 40% increase.
- Supporting her perspective, Wood shares a chart comparing Bitcoin’s price to gold, demonstrating a strong, long-term upward trend.
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During a period of stagnation in Bitcoin’s price, prominent investor Cathie Wood argues that Bitcoin will gain significant superiority over gold.
Cathie Wood Reinforces Support for Bitcoin
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The launch of Bitcoin ETFs attracted strong inflows from both retail and institutional players in the past month. Cathie Wood from Ark Invest believes that Bitcoin will replace gold among safe-haven assets more rapidly than anticipated. Wood delves into her perspective on Bitcoin’s current behavior, emphasizing its role as a risk-averse asset and a perceived “flight to quality” amid economic uncertainties.
Wood recalls a pattern observed during the regional banking crisis in March 2023, where Bitcoin’s price exhibited a significant 40% increase. She illustrates this period as a time when the BTC price experienced notable growth while the regional banking index, represented by KRE, faced challenges. Wood notes that Bitcoin is regaining attention in a period where the regional banking index shows signs of volatility.
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She claims that the concept of Bitcoin acting as a “flight to quality” has become more pronounced. Meanwhile, global markets, including China, are grappling with strong economic uncertainties as more investors seek exposure to Bitcoin.
Wood explains the recent dip in BTC price as a situation guided by expected purchases leading the way for the launch of 11 ETFs, followed by the subsequent “sell the news” phenomenon, typically driven by opportunistic trading strategies.
Supporting her perspective, Wood shares a chart comparing Bitcoin’s price to gold, demonstrating a strong, long-term upward trend. According to Wood, this trend reflects the ongoing process of Bitcoin partially replacing gold in the investment landscape.
As Bitcoin continues to navigate market dynamics and economic uncertainties, Wood’s views provide valuable insights into the evolving role of cryptocurrency in the broader financial landscape.
Comparison of BTC and Gold in 2024
While Wall Street grapples with another regional banking crisis scenario, with many major companies already announcing significant layoffs for the year, Bloomberg Intelligence strategist Mike McGlone suggests that Bitcoin supporters continue to believe that BTC could be a robust hedge against the potential downturn in bond and equity markets in 2024. However, McGlone holds a different view.
According to McGlone, the probability of the assumption typically beneficial for risky assets, such as potential interest rate cuts by the US Federal Reserve, not materializing is higher. Therefore, he suggests that gold might outperform Bitcoin in terms of performance this year.