Bitcoin labeled by Cathie Wood as a “Flight To Safety” Asset

Cathie Wooden, the CEO of funding administration agency Ark Make investments has touted her assist for Bitcoin (BTC) by referring to the main cryptocurrency by market capitalization as a “flight to security” asset.

Forex Devaluation and Bitcoin Value

In a dialog with Squawk Field CNBC host Andrew Ross Sorkin, Cathie was requested what her ideas are in direction of the rise within the worth of Bitcoin which the business noticed just a few weeks again. At first, she acknowledged that spot Bitcoin ETFs have performed a big position in pushing the worth of the flagship digital asset to affordable ranges. Cathie additionally recognized foreign money devaluation as a brand new international menace in favor of BTC worth.

In line with Ark Make investments CEO, Nigeria has been experiencing its native foreign money devaluation within the final 9 months, down by greater than 50%. She equally mentioned Egypt’s foreign money just lately devalued by 40% and the identical development applies to Argentina. For Cathie, all of those foreign money devaluations current Bitcoin as a flight to security particularly as residents of those nations search a hedge in opposition to the financial meltdown.

“I believe it is a flight to security, consider it or not, going down. A hedge in opposition to devaluation. A hedge in opposition to lack of buying energy and wealth,” Cathie Wooden defined.

Between March and Might 2023, a few prime regional banks in the US together with Silvergate Bank, Silicon Valley Bank, and Signature Bank crashed, owing to sure regulatory challenges. To underscore her opinion of BTC being a flight of security property, Cathie talked about that the worth of the coin reacted positively to those implosions by gaining 40%.

Spot Bitcoin ETF Success Displays On BTC Value

Because the Ark Make investments CEO identified, spot Bitcoin ETFs have immensely influenced the worth of Bitcoin and different cryptocurrencies. Two days in the past, Coingape reported that the brand new product triggered a digital asset inflow of up to $862 million. It’s value noting that Bitcoin hit its newest all-time high (ATH) on the time when the spot Bitcoin ETF market was recording large inflows.

Bitcoin halving is scheduled to occur later this month and this much-anticipated occasion can be anticipated to push Bitcoin worth to new ranges. On the time of this writing, BTC was trading at $66,500.29 with a 1.72% surge previously 24 hours. From the final market outlook, that is arguably the primary notable twist to date this week.