Star fund manager Cathie Wood is touting Bitcoin’s strength as a hedge against inflation.
In a new interview with Yahoo Finance, the CEO of ARK Invest says she expects BTC to continue to outperform gold.
“I believe there is no better hedge against inflation than Bitcoin. As we know, gold has been moving, although now it’s lagging Bitcoin fairly dramatically so there’s probably some share shift but I do believe that both of them will do well over time.”
Woods says she also expects Bitcoin’s adoption among institutional investors and major companies to rise.
“I think we’re going to hear about more companies putting this hedge on their balance sheet as well particularly tech companies who understand the technology and are comfortable with it.”
Woods says Bitcoin’s relatively fast recovery from its massive bear market that began in early 2018 is singular and remarkable. She believes the macroeconomy played a key role in the leading cryptocurrency’s rapid resurgence.
“Usually when there’s a parabolic move like Bitcoin enjoyed in 2017, it usually takes a generation for that asset or that stock to get back to that peak. I think part of this or the follow-through might have been triggered by again the bond yield pushing, doing what many people did not expect it to do.”
ARK has been bullish on Bitcoin for years, and purchased its first Bitcoin allocation back in 2015, when its price was about $250.