Bitcoin follows the ups and downs of the US stock market, Ark Invest's Cathie Wood: Everyone is overlooking currency depreciation issues, Bitcoin is a safe haven

CNBC interviewed Cathie Wood, founder of Ark Invest, yesterday (4/3), regarding the recent significant drop in Bitcoin. The host mentioned that Bitcoin surged to 70K and then dropped to 60K, mirroring the fluctuations in the U.S. stock market, appearing to be susceptible to liquidity and speculative behavior.

In addition to ETF, the issue of currency devaluation has been overlooked

Cathie Wood stated that aside from the impact of Bitcoin spot ETF on the significant rise in Bitcoin, people have overlooked the issue of currency devaluation.

She mentioned that the currencies of Nigeria, Egypt, and Argentina are experiencing severe devaluation. She believes that Bitcoin is a safe haven and can serve as a hedge against currency devaluation, preventing the erosion of purchasing power and wealth.

She also pointed out that after the local banking crisis in the United States last year, Bitcoin surged by over 40%.

"Bitcoin has no Counterparty Risk," she stated.

Cathie Wood believes that Bitcoin is a Risk-On asset where investors enter without fear of risks, but it is also a Risk Off behavior to escape from risky assets, citing past incidents like during the Greek crisis. She sees Bitcoin as an insurance strategy against unsound fiscal policies.

“There are currency devaluations that people are not talking about,” says Ark Invest CEO @CathieDWood on the rise of $BTC. “I think this is a flight to safety, believe it or not, taking place. A hedge against devaluation. A hedge against loss of purchasing power and wealth.” pic.twitter.com/8NVh5NS9tP

— Squawk Box (@SquawkCNBC) April 3, 2024