- Cathie Wood said Ark remains “very positive” on bitcoin despite the recent drop.
Ark Investment Management boss Cathie Wood said she remains “very positive on bitcoin” despite the recent price drop, helping the world’s biggest cryptocurrency recover to above $50,000.
Bitcoin plunged on Monday and Tuesday as investors became nervous about the record-breaking rally that drove the token to a record high of above $58,000 on Sunday.
The cryptocurrency tumbled to as low as $45,000 on Tuesday, as fears set in about the recent surge in prices across financial markets. The tech-heavy Nasdaq index has also suffered this week.
Wood told Bloomberg Radio on Tuesday evening that she was not fazed by the drop in the bitcoin price.
“We’re very positive on bitcoin,” she said, adding she was “very happy to see a healthy correction here. No market is straight up. Everyone should know that.”
Wood also implied investors should think about buying the dip, saying: “Everyone should have some dry powder for days like these.”
The Ark chief’s comments added to a rebound in the bitcoin price, which was up around 7% to $50,250 at 6am ET on Wednesday.
Despite the recent slide from above $58,000, bitcoin is still 70% higher for the year so far.
Wood told Bloomberg there are “so many use cases” for bitcoin. “But probably, the most important use case is as an insurance policy around the world against confiscation of wealth.
“And that can happen in two ways. It can happen with inflation. Bitcoin, I think, is the best hedge against inflation out there bar none, better than gold.”
Wood also said bitcoin can protect against “outright” wealth confiscation, for example by irresponsible governments.
“If you think there’s a 5% chance of that happening, you should put 5% of your portfolio long term – or your wealth – into something like bitcoin. You can carry the keys in your head across the border.”
Wood rocketed to prominence in 2020 with successful bets on big tech names such as Tesla and Square. Ark’s flagship fund rose more than 150% last year.