ARK Invest Chief Executive Officer (CEO) and Chief Information Officer (CIO) Cathie Houthas expressed optimism about Bitcoin’s potential to potentially rise above gold, referring to the cryptocurrency as ‘the digital gold.’
Bitcoin vs gold
Appears in a recent interview on from ARK Invest official YouTube channel, Wood and ARK Invest’s Chief Futurist, Brett Winton, delves into a lengthy discussion about the historical and most recent price movements of Bitcoin in relation to gold.
Descriptive Bitcoin as both a “store of value” and a “risk hedge,” Wood highlighted the cryptocurrency’s remarkable rise, especially when compared to gold. She shared a chart illustrating the price relationship between Bitcoin and gold, which shows a robust and sustained uptrend for Bitcoin. This upward trajectory indicates the cryptocurrency’s opportunity catch up on gold as a more valuable investment in the future.
Wood has also been discussed Bitcoin’s performance amid past economic crises. She highlighted a historic price pattern observed during the region banking crisis in March 2023, noting that Bitcoin rose as much as 40% while the regional banking index represented by KRE imploded.
Currently, the regional banking index is experiencing a similar crisis, and according to Wood, Bitcoin is following the same pattern by continuing a steady rise. She attributes this upward trend to the adoption and introduction of 11 Discover Bitcoin ETFs in the cryptocurrency market.
As a result, Wood has categorized Bitcoin as a ‘flight to safety’ investment asset, providing a space for individuals to store their money against inflation and the effects of climate change. economic crisis.
Discover Bitcoin ETFs Expected to Drive the Bitcoin Wave
After the approval and launch of Spot Bitcoin ETFs on January 10, 2024, Bitcoin suffered an unexpected drop, losing a significant portion of the gains built up during the pre-approval excitement. The cryptocurrency fell from an all-time high of over $45,000 in 2023 to under $40,000.
Hout explained that Bitcoin’s decline after the introduction of ETFs the result of intense anticipatory buying before the launch of ETFs, with subsequent ‘selling on the news’ event driven by opportunistic traders.
Looking ahead, ARK Invest CEO anticipates Bitcoin’s continued rise driven by broader accessibility facilitated by Discover Bitcoin ETFs. She highlighted that Spot Bitcoin ETFs offered an easier and more inclusive way to access Bitcoin, attracting significant inflows into the cryptocurrency as institutional investors actively participate in the market.
BTC drops below $43,000 once again | Source: BTCUSD on Tradingview.com
Featured image from Seeking Alpha, chart from Tradingview.com
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