The price of bitcoin (BTC) and most other cryptocurrencies completely collapsed yesterday. Bitcoin even hit $30,000 again, a price point not seen for nearly a year. Nevertheless, ARK Invest founder Cathie Wood expects the bear market to end soon.
Cathie Wood on Bitcoin and Crypto
In a video on youtube Wood predicts that the bottom for risk on assets such as bitcoin and ethereum (ETH) will be reached shortly. According to her, the strong correlation between the stock market and the crypto market is a temporary phenomenon and according to Wood, this temporary strong correlation shows that we are approaching the end of the bear market,
“Crypto, a new asset class, shouldn’t look like the Nasdaq, but it does. It’s highly correlated at the moment. You know you’re in a bear market and maybe close to the end when everything starts to match, and we see the capitulation of one market after another.”
Crypto in the long run
Cathie Wood remains hopeful for the long term despite the current bear market. According to her, there is a good chance that the crypto industry has the potential to grow exponentially and even to fundamentally change society.
“Given the desolation in the stock and bond markets today and now increasingly commodity markets and crypto, take a look at our research, read our Twitter profiles for some hope and optimism, because I can’t tell you how excited and confident we are that our platforms will transform the world and now enter exponential growth trajectories. This isn’t going to be five years from now. We are now living the reality that was just a dream in the tech and telecom bubble.”
Cathie Wood and ARK Invest have focused on industries, such as, of course, the crypto industry, which they expect to grow extremely fast in the future. Despite the bear market, this belief has not changed and ARK Invest’s investment strategy remains the same.