ARK Invest Founder Explains the Latest Crypto Correction
Cathie Wood of ARK Invest suggests in a new video on her firm’s YouTube channel that a pressured commodities market, caused by macroeconomic uncertainty which pushed the US dollar up, had an effect on the crypto markets. She believes the two are interrelated with the latest correction in the crypto markets as a result.
Wood also mentions a “strike against technology, growth and innovation” which bears weight on the stock market drags crypto assets along. Nevertheless, she believes this won’t continue for much longer:
“The dollar going up suggests a flight to safety, and that is a downward force on inflation.
Commodities are priced in dollars. The dollar is going up; all other things equal, commodity prices would go down.
In the crypto markets, we’re seeing a correction. They are starting to succumb to what we’re seeing in the equity market, which is this strike against technology, growth and innovation.
We think that’s going to be short-lived.”
According to Wood, tech and innovation stocks are not in a bubble as what many others suggest, but instead in “deep value territory.”
“Much like the early years of ARK’s research on and investing in electric vehicles and Bitcoin, disruptive innovation seems to be in deep value territory.
Based on the last eight years of our research, the opportunities will scale from $10-12 trillion today, or roughly 10% of the global public equity market cap, to $200+ trillion during the next ten years.”
The ARK Invest founder predicts that Bitcoin can go over 10x of its current price considering that the market is young and has a long way to go to maturity. She said:
“We think that the move by institutions into Bitcoin … could add $500,000 to bitcoin’s price if they moved into the tune of roughly 5% over time.”
Wood is convinced about the potential of cryptocurrencies and in particular Bitcoin. Two months ago she predicted that institutional investors and emerging markets will send Bitcoin’s price surging by over $700,000.
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Source: igaming
