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Cathie Wood, the CEO of funding administration agency Ark Invest has touted her assist for Bitcoin (BTC) by referring to the main cryptocurrency by market capitalization as a “flight to safety” asset.

Currency Devaluation and Bitcoin Price

In a dialog with Squawk Box CNBC host Andrew Ross Sorkin, Cathie was requested what her ideas are in the direction of the rise within the value of Bitcoin which the trade noticed a few weeks again. At first, she acknowledged that spot Bitcoin ETFs have performed a important position in pushing the value of the flagship digital asset to cheap ranges. Cathie additionally recognized forex devaluation as a new international menace in favor of BTC value.

According to Ark Invest CEO, Nigeria has been experiencing its native forex devaluation within the final 9 months, down by greater than 50%. She equally stated Egypt’s forex lately devalued by 40% and the identical pattern applies to Argentina. For Cathie, all of those forex devaluations current Bitcoin as a flight to security particularly as residents of those nations search a hedge in opposition to the financial meltdown.

“I think this is a flight to safety, believe it or not, taking place. A hedge against devaluation. A hedge against loss of purchasing power and wealth,” Cathie Wood defined.

Between March and May 2023, a couple of prime regional banks within the United States together with Silvergate Bank, Silicon Valley Bank, and Signature Bank crashed, owing to sure regulatory challenges. To underscore her opinion of BTC being a flight of security belongings, Cathie talked about that the value of the coin reacted positively to those implosions by gaining 40%.

Spot Bitcoin ETF Success Reflects On BTC Price

As the Ark Invest CEO identified, spot Bitcoin ETFs have immensely influenced the value of Bitcoin and different cryptocurrencies. Two days in the past, Coingape reported that the brand new product triggered a digital asset inflow of up to $862 million. It is value noting that Bitcoin hit its newest all-time high (ATH) on the time when the spot Bitcoin ETF market was recording big inflows.

Bitcoin halving is scheduled to occur later this month and this much-anticipated occasion can be anticipated to push Bitcoin value to new ranges. At the time of this writing, BTC was trading at $66,500.29 with a 1.72% surge prior to now 24 hours. From the overall market outlook, that is arguably the primary notable twist to date this week.

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Benjamin Godfrey is a blockchain fanatic and journalists who relish writing about the actual life functions of blockchain know-how and improvements to drive basic acceptance and worldwide integration of the rising know-how. His needs to coach folks about cryptocurrencies evokes his contributions to famend blockchain primarily based media and websites. Benjamin Godfrey is a lover of sports activities and agriculture. Follow him on Twitter, Linkedin

The introduced content material could embrace the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability in your private monetary loss.