Ark Invest CEO and founder Cathie Wood took stock of the recent corrections seen in the prices of Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) prices and touched on their utility for diversification purposes in the latest episode of the firm’s “In the Know” podcast.
https://www.youtube.com/watch?v=giydAxJTeow?start=2005
Why Crypto Is Down: Wood said that more and more hedge funds are involved in Bitcoin and Ethereum and — with the contraction seen in regular markets — a higher correlation in the prices of cryptocurrencies is visible.
However, over the full market cycle, this correlation is “extremely low,” according to wood.
See Also: How To Buy Bitcoin (BTC)
Interesting For Diversification: This low-correlation with other assets makes cryptocurrencies “a very interesting asset” for diversification purposes, Wood said.
The hedge fund manager broke Ark’s understanding of cryptocurrencies in three ways:
- Money revolution
- A financial revolution
- And the next generation internet or metaverse revolution
In January, Ark analyst Yassine Elmandjra had pointed to “the velocity of fiat currencies,” which could worsen inflation and currency devaluation.
At the time, Ark Invest said that if Bitcoin could capture just 5% of the global monetary base beyond the largest of four fiat currencies, its market cap could triple to $2.8 trillion by 2027.
Read Next: Bitcoin Crosses $42K Level, Ethereum Above $3K As Dogecoin And Meme Coins Shine Too — Why The Pressure On Crypto Market Is Still On
This news is republished from another source. You can check the original article here
Be the first to comment