Bitcoin (BTC) is rising because it is a “flight to safety” against devaluing fiat currencies, says ARK Invest CEO Cathie Wood.
In an interview with CNBC shared online on April 3, Wood described BTC as both a risk-on and risk-off investment.
The United States’ new exchange-traded funds (ETFs) may have driven the mainstream narrative around Bitcoin in 2024, but for ARK’s Wood, there is another key factor at play.
While institutions are finally getting some much-needed exposure to BTC, regular citizens are being presented with an even more important opportunity.
“There’s something else going on around the world,” she said.
Wood referenced the performance of currencies such as the Nigerian naira and Egyptian pound, both of which have lost around half their value against the U. S. dollar in recent months.
In these cases and others, it was deliberate government interventions — not direct market forces — that decimated the exchange rate.
“I think this is a flight to safety, believe it or not, taking place,” Wood continued.
The interview also brought up last year’s U. S. regional banking crisis, which fueled BTC price rises, and the Greek financial crisis of 2013.
“I think this is an insurance policy against rogue regimes or against just horrible fiscal and monetary policies,” Wood concluded.
As Cointelegraph continues to report, Wood has kept up public support of Bitcoin this year as ARK’s ETF product goes head-to-head with the world’s biggest asset managers.
This week, however, the fund saw uncharacteristic net outflows of nearly $90 million.
“I suspect this has to do with quarterly rebalancing flows,” popular trader Daan Crypto Trades commented in part of a response on X.
Accompanying data from crypto intelligence firm Arkham revealed preliminary outflows from the Grayscale Bitcoin Trust — which ARK’s outflows beat on April 2 — at around $130 million.
In March, Wood predicted a $1 million BTC price tag coming before 2030, chiefly due to a new influx of institutional money. The majority of the target market, she added, was not yet on board.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.