According to CoinDesk, Cathie Wood, CEO of ARK Invest, has attributed the surge in Bitcoin's value this year to currency devaluations in countries like Nigeria, Egypt, and Argentina. She has described Bitcoin as an 'insurance policy' against unstable regimes and poor fiscal and monetary policies. Bitcoin has seen a growth of over 130% in the past year, reaching a record high of $73,800 last month. This rise coincided with a surge in demand from spot Bitcoin ETFs in the United States.
In an interview with CNBC, Wood highlighted a different narrative, stating that global currency devaluations, which are not being widely discussed, are contributing to Bitcoin's rise. She pointed out that the Nigerian Naira has depreciated by 50-60% in the past nine months, Egypt's currency has been devalued by 40%, and Argentina continues to devalue its currency. Wood believes that these devaluations are leading people to seek safety in Bitcoin as a hedge against the loss of purchasing power and wealth.
Two weeks ago, Wood reiterated her prediction of a $1.5 million price target for Bitcoin, referring to it as a 'financial super highway.' She noted that even in the United States, when regional banks collapsed last year, Bitcoin's value increased by 40%. She emphasized that Bitcoin does not carry counterparty risk, making it both a risk-on and risk-off asset. She recalled that ARK Invest first invested in Bitcoin when it was valued at $250, at a time when Greece was considering exiting the Eurozone.
