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- 1 BTC holds the potential to substitute gold in the near future, said Cathie Wood.
- 2 The spot Bitcoin ETF approval has played a major role in strengthening BTC’s popularity and emerging role in the financial market.
On February 4, Cathie Wood, the founder, and CEO of ARK Invest expressed support for Bitcoin (BTC) in a chat with chief futurist Brett Winton. BTC holds the potential to surpass gold in the near future and has been rising since the launch of spot BTC ETFs. The cryptocurrency is more accessible to investors and it is emerging as a “risk off asset”.
Why Cathie Wood Supports Bitcoin
Cathie Wood believes that the value of BTC will reach $1 Million someday. She has witnessed BTC playing a vital role in emerging markets as it is used as an insurance policy.
Such thoughts showcase the positive and supportive attitude of Cathie Wood for cryptocurrencies. On February 4, in a chat with Brett Winton, Cathie said that Bitcoin has been rising in comparison to gold, mainly after the launch of spot BTC ETFs.
“In comparison to gold, BTC has been rising. BTC is now a substitution for gold and is going to continue now”, added Cathie.
According to Wood, cryptocurrency will act as a risk-off asset during the financial crisis, and investors need to move to BTC from gold. In March 2023, the United States experienced a regional bank crisis. At that time, BTC prices soared by 40%, showcasing the potential to handle the market crises.
“Gold is a trillion-dollar asset and BTC is supposed to get a nice slug of that”, Cathie explained.
She does not support BTC just because of its value, but rather because of the fundamental role the digital asset plays as a decentralized, private choice in place of traditional currencies. The king of cryptocurrency is building a new era of finance, the first digital, global, and decentralized monetary system.
Furthermore, a recent report of Fidelity shows that BTC’s correlation with gold improved in 2023. The one-year correlation between gold and BTC stands at 0.80, as per data from Longtermtrends.
Both assets performed well in 2023 despite geopolitical uncertainties and rising interest rates. In 2023, Gold’s price in the United States jumped 14.6% whereas BTC gained a hike of 156%.
Focusing on the spot BTC ETF, Cathie was not surprised by BTC’s price decline after the ETF approval. According to Coingecko data, BTC’s price declined 20% from $48,500 to $38,740 on January 24. Moreover, 15 Million of the 19.5 Million BTC in circulation haven’t shown any movement in the past 155 days, indicating long-term holding.
Cathie Wood’s company is one of the ETF issuers that launched a Bitcoin ETF on January 11 as the ARK 21Shares Bitcoin ETF and holds over $705.8 Million in BTC.
BTC’s Current Performance
BTC is currently trending at $42,803.0 with, a decline of 0.72% in the past day. The 24-hour trading volume is $17,678,413,259 with a market cap of over $840,239,405,293, as per CoinMarketCap data.
BTC’s circulating supply is 19,619,687 and the maximum supply is 21,000,000.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
