PEOPLEBITCOIN

Happy to see a healthy pullback in Bitcoin! Ark Invest's Cathie Wood advises: Always keep cash on hand to buy the dip

share
Happy to see a healthy pullback in Bitcoin! Ark Invest

Ark Investment founder Cathie Wood: "No market goes straight up, everyone should be aware of that."

After experiencing a pullback of over 20%, Bitcoin has returned to the $50,000 mark. Cathie Wood, CEO of Ark Investment, reiterated her optimistic view and expressed her excitement about the market undergoing a healthy correction.

Always Keep Cash on Hand

Cathie Wood was interviewed by Bloomberg earlier today, 2/24, and she stated:

We remain very optimistic about Bitcoin and are pleased to see a healthy pullback at this level. No market goes straight up, and everyone should be aware of that. You should always have some cash on hand to deal with such trends, as I have been saying for a while.

Cathie Wood emphasized that she sees a lot of use cases for Bitcoin, with the most important application being: "Bitcoin can act as a global hedge against wealth confiscation." And this can be achieved in two ways.

One scenario is currency inflation, and I believe Bitcoin is the best hedge against inflation, even better than gold; another scenario may not need time to ferment, such as when you see a Middle Eastern prince confiscating the assets of his relatives.

She said that if you think there is a 5% chance of the above scenarios happening, then you should have 5% of Bitcoin in your asset allocation.

Bullish on Tesla's Bitcoin Investment

Analyst Tasha Keeney, in a recent interview with CNBC, mentioned that the current macro trend of Bitcoin aligns with the views covered in their early 2021 publication "ARK Invest Big Ideas 2021". She addressed the recent involvement of Tesla in Bitcoin:

1. Bitcoin as Corporate Cash

Companies including Tesla, Square, MicroStrategy, etc., have already invested in Bitcoin. If S&P 500 companies convert 1% of their cash reserves to Bitcoin, the price of Bitcoin is expected to increase by up to forty thousand dollars. She also mentioned the positive impact of Tesla accepting Bitcoin payments on this asset.

2. Tesla Shareholder Impact

Tasha Keeney pointed out that the general public still perceives Bitcoin as a risky and relatively unfamiliar asset, but for Tesla, Bitcoin not only serves as a reserve asset but also plays a role in international remittances. In the long term, Tesla, as an early adopter among companies, stands to gain significant profits in this wave.

Additionally, on the 22nd, it was reported that Ark Invest reiterated that the market value of Bitcoin will reach six trillion dollars in the next five years, undoubtedly injecting a shot of adrenaline into the market.