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January 20, 2022
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Here’s What’s Driving the Crypto Correction, According to Hedge Fund Veteran Cathie Wood

ARK Invest founder Cathie Wood says the driving drive behind the current crypto market correction is related to a pattern taking place in the fairness markets.

In a brand new video on the ARK Invest YouTube channel, Wood suggests that macroeconomic uncertainty is pushing the US greenback up, placing strain on commodities markets.

She additionally says {that a} “strike against technology, growth and innovation” is weighing on the inventory market and pulling crypto property down with it.

However, Wood suspects the strike gained’t final lengthy.

“The greenback going up suggests a flight to security, and that could be a downward drive on inflation.

Commodities are priced in {dollars}. The greenback goes up; all different issues equal, commodity costs would go down.

In the crypto markets, we’re seeing a correction. They are beginning to succumb to what we’re seeing in the fairness market, which is that this strike in opposition to expertise, development and innovation.

We suppose that’s going to be short-lived.”

The ARK Invest CEO is thought for having a contrarian view on inflation and excessive fairness costs. Wood believes tech and innovation shares are usually not in a bubble however as a substitute in “deep value territory.”

“Much like the early years of ARK’s analysis on and investing in electrical autos and Bitcoin, disruptive innovation appears to be in deep worth territory. 

Based on the final eight years of our analysis, the alternatives will scale from $10-12 trillion right now, or roughly 10% of the international public fairness market cap, to $200+ trillion throughout the subsequent ten years.”

Wood additionally spoke of a attainable state of affairs final month that might drive the price of Bitcoin (BTC) over 11x its present worth.

“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.”

Bitcoin is buying and selling at $41,193.22 at time of writing, down 1.48% in the final 24 hours.

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Featured Image: Shutterstock/Vladi333/Vladimir Sazonov

 

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