Recently, there has been a power struggle between gold and Bitcoin in the investment world. Investors are hesitant about which asset is a safer and more profitable investment tool. In this news, we will examine ARK Invest CEO Cathie Wood’s prediction that Bitcoin may shake the gold throne. Here are the details…
Ark Invest manager shared his Bitcoin comment
ARK Invest CEO Cathie Wood, one of the important names in the cryptocurrency markets, made new statements. In particular, he stated that investors have started to shift from gold investments to Bitcoin. She also thinks Bitcoin could be the “new gold” in the long run. Wood states that investors are turning to Bitcoin with the entry of spot Bitcoin ETFs into the market. Emphasizing that ETFs make access to Bitcoin easier for investors, Wood underlines that Bitcoin has gained value compared to gold. Predicting that this trend will continue, Wood thinks that investors can trust Bitcoin, just like gold, in periods when they are risk averse.
Wood gives the example of the “regional banking crisis” experienced by the USA in March 2023. It reminds us that the price of Bitcoin increased by 40% during the crisis. Now, he says, symptoms of the crisis are reemerging. He also predicts that this situation may create a new opportunity for Bitcoin. Wood also considers it a positive sign that the majority of Bitcoins in the market have not changed hands for a long time. He thinks this shows that investors see Bitcoin as a long-term investment tool.
ETF launch and price drop
However, Wood does not ignore the decline in Bitcoin price following the ETF launch. Interpreting this decline as a “sell the news” reaction, Wood states that he expects a positive trend in the long term. Cathie Wood’s prediction indicates that the power dynamics between Bitcoin and gold may change. However, it remains unclear whether this change will occur and how long it will take. It is important for investors to pay attention to such predictions and make their own decisions by doing their own research.
Regarding the spot Bitcoin ETF launch, Wood said he was not surprised by the price correction, which saw Bitcoin drop 20% from $48,500 a few hours after launch to $38,740 on Jan. 24, according to CoinGecko. Before the launch, Wood predicted that the launch would create a “sell on news” phenomenon. However, he noted that 15 million of the 19.5 million Bitcoins currently in circulation have not moved in 155 days and therefore remain in “strong hands,” which may indicate that most Bitcoin holders have a longer-term perspective.
What does Wood’s prediction mean?
Cathie Wood’s prediction is an indication that Bitcoin is starting to play an increasingly important role in the investment world. While gold has been considered a safe haven for many years, it will take time for Bitcoin to capture this position. But Wood’s prediction may cause investors to take Bitcoin more seriously as an investment option. ARK Invest also became a major buyer of shares of cryptocurrency exchange Coinbase in February 2022, according to Cathie’s ARK data. Because it currently owns 7.187 million shares worth $843 million in various ETFs. However, the company has been meticulously selling Coinbase shares since June 7, 2023, when it owned 11.43 million shares.
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