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<p class="is-style-lead">Cathie Wood, ARK Invest CEO, has been vocal about her belief in Bitcoin’s potential to overshadow gold as the preferred safe-haven asset.&nbsp;</p> 
<p>Wood’s insights, shared during a <a href="https://www.youtube.com/watch?v=hFg1TMACw4I%20%20Cathie%20wood%20says%20Bitcoin%20is%20actually%20replacing%20gold%20as%20a%20value%20storage%20asset?" target="_blank" rel="noopener">YouTube update</a>, highlighted Bitcoin’s performance during last year’s regional bank crisis in March, where it saw a remarkable 40% price increase, contrasting with the struggles faced by the regional bank index.</p> 
<p>The trend, she noted, is resurfacing as Bitcoin gains momentum while the regional bank index faces volatility. Her observations align with a growing sentiment that Bitcoin is increasingly viewed as a ‘flight to quality’ asset.</p> 
<p>The <a href="https://crypto.news/traders-liquidate-over-250m-amid-bitcoin-price-decline/">recent dip</a> in Bitcoin’s price following the <a href="https://crypto.news/sec-approves-spot-bitcoin-etf-on-accelerated-basis/">introduction</a> of 11 exchange-traded funds (ETFs) was attributed by Wood to a cycle of anticipatory buying and subsequent selling, a common pattern in financial markets. </p> 
<p>Despite this, Wood presented data showing Bitcoin’s price trend against gold, illustrating a strong, long-term uptrend. She believes this signals Bitcoin’s gradual move towards becoming a significant part of the investment landscape, potentially replacing gold for some investors.</p> 
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio">
 <div class="wp-block-embed__wrapper"> <iframe title="Big Ideas 2024 | ITK with Cathie Wood" width="1020" height="574" src="https://www.youtube.com/embed/hFg1TMACw4I?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe> 
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</figure> 
<p>Wood’s analysis extends beyond Bitcoin’s price dynamics, touching on broader market movements. She noted the shift of investors from <a href="https://crypto.news/oaktrees-howard-marks-sees-minimal-difference-between-bitcoin-and-gold/">gold to Bitcoin</a>, facilitated by the launch of spot Bitcoin ETFs, which offer a more accessible route to investing in Bitcoin. Wood’s comparison of Bitcoin to gold, emphasizing its role as a “risk off asset” during banking sector instability, further cements her stance on Bitcoin’s evolving role in financial markets.</p> 
<p> You might also like: <a href="https://crypto.news/blackrock-and-fidelitys-bitcoin-etfs-break-into-top-10-with-4-8b-january-inflow/"> BlackRock and Fidelity’s Bitcoin ETFs break into top 10 with $4.8b January inflow </a> </p> 
<h2 class="wp-block-heading" id="bitcoin-s-future-as-an-asset">Bitcoin’s future as an asset</h2> 
<p>The market’s response to the spot Bitcoin ETF launch, while initially leading to a price correction, has not dampened the long-term outlook for Bitcoin. Wood pointed out that a significant portion of Bitcoin remains in “strong hands,” indicating a long-term investment horizon among many Bitcoin holders.</p> 
<p>Previously, Wood’s <a href="https://crypto.news/cathie-wood-bitcoin-is-the-only-asset-to-store-for-the-next-10-years/">discussion</a> on a podcast in November 2023 with Merryn Somerset Webb had revealed her conviction in Bitcoin’s potential as a deflation hedge over the next decade. Wood was asked about her choice between Bitcoin, gold, or cash for a 10-year investment hold. She emphasized her belief in Bitcoin as “digital gold,” citing its lack of <a href="https://crypto.news/stablecoin-risks-and-how-to-overcome-them-opinion/">counterparty risk</a> and its rising popularity among institutional investors.</p> 
<p>Meanwhile, analysts examine Bitcoin’s relationship with traditional investment assets, noting its increased correlation with gold in 2023. The observation, <a href="https://institutional.fidelity.com/app/proxy/content?literatureURL=/9911424.PDF" target="_blank" rel="noopener">highlighted</a> in a Fidelity analysis, contrasts with Bitcoin’s previous trend of moving inversely to interest rates.</p> 
<p>Furthermore, the one-year rolling correlation between Bitcoin and gold reaching a record high of 0.8, as <a href="https://www.longtermtrends.net/bitcoin-vs-gold/" target="_blank" rel="noopener">reported</a> by Longtermtrends, and suggests Bitcoin is solidifying its position as a reliable component of investment portfolios amid global rate hikes.</p> 
<p> Read more: <a href="https://crypto.news/bitcoin-ethereum-price-gaps-narrow-on-u-s-crypto-exchanges-post-spot-etf-approvals/"> BlackRock and Fidelity’s Bitcoin ETFs break into top 10 with $4.8b January inflow </a> </p>

Cathie Wood advocates for BTC as next safe-haven asset

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