ARK Invest Chief Executive Officer (CEO) and Chief Information Officer (CIO) Cathie Wood, has expressed her optimism about Bitcoin’s capabilities to potentially rise above gold, referring to the cryptocurrency as ‘the digital gold.’
Bitcoin Versus Gold
Appearing in a recent interview on ARK Invest’s official YouTube channel, Wood and ARK Invest’s Chief Futurist, Brett Winton, delved into a lengthy discussion about Bitcoin’s historical and most recent price movements in relation to gold.
Describing Bitcoin as both a “store of value” and a “risk off asset,” Wood emphasized the cryptocurrency’s notable rise, particularly when compared to gold. She shared a chart illustrating a Bitcoin to gold price ratio which revealed a robust and sustained upward trend for Bitcoin. This upward trajectory hints at the possibility of the cryptocurrency overtaking gold as a more valuable investment in the future.
Wood also discussed Bitcoin’s performance amid past economic crises. She highlighted a historical price pattern observed during the regional bank crisis in March 2023, noting that Bitcoin rose as high as 40% while the regional bank index, represented by KRE, was imploding.
Currently, the regional bank index is experiencing a similar crisis, and according to Wood, Bitcoin is following the same pattern by maintaining a steady ascent. She attributes this uptrend to the approval and introduction of 11 Spot Bitcoin ETFs into 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 funds against inflation and the effects of the economic crisis.
Spot Bitcoin ETFs Expected To Fuel Bitcoin Surge
After the approval and launch of Spot Bitcoin ETFs on January 10, 2024, Bitcoin faced an unexpected decline, relinquishing a significant portion of the gains accumulated during the pre-approval excitement. The cryptocurrency dropped from a 2023 all-time high of over $45,000 to below $40,000.
Wood explained that Bitcoin’s descent after the introduction of ETFs resulted from intense anticipatory buying before the launch of ETFs, with a subsequent “sell on the news” event driven by opportunistic traders.
Looking ahead, the ARK Invest CEO anticipates Bitcoin’s continued rise, propelled by the broader accessibility facilitated by Spot Bitcoin ETFs. She highlighted that Spot Bitcoin ETFs offered an easier and more inclusive avenue to access Bitcoin, attracting substantial inflows into the cryptocurrency as institutional investors actively participate in the market.
BTC drops below $43,000 once again | Source: BTCUSD on inew.news