According to Cathie Wood, CEO of ARK Invest, national currency devaluations worldwide have contributed to bitcoin’s surge to a record high this year.With a surge in demand from spot bitcoin ETFs in the US, Bitcoin (BTC) reached an all-time high of $73,800 last month, up more than 130% over the previous 12 months.In an interview with CNBC, Wood promoted a different storyline, claiming that bitcoin serves as a kind of “insurance policy against rogue regimes and horrible fiscal and monetary policies.”
“There is something else going on around the world.” Wood said. “There are currency devaluations taking place that people are not talking about. The Nigerian naira is down 50, 60% in the last nine months. Egypt just devalued by 40%. Argentina, continuing to devalue. I think is a flight to safety taking place, a hedge against devaluation a hedge against a loss of purchasing power and wealth.”
Wood stated two weeks ago that he still believed bitcoin could reach a price of $1.5 million and called it a “financial super highway.”
“We saw this even here last year in the United States, regional banks imploded, bitcoin went up 40%,” she said today. “Bitcoin does not have counterparty risk. This is both a risk on asset and it is risk off. I remember we got in at $250 when Greece was threatening to leave the euro.”