- ARK Invest CEO Cathie Wood has offered new insights into comparing Bitcoin to Gold.
- Cathie Wood expects Bitcoin to outperform Gold in the long term.
- Industry analysts have predicted Bitcoin ETFs will perform similarly to Gold ETFs.
The progressive performance of Bitcoin over the years has often spurred comparison to Gold, rooted in the similarities of both assets as fiat-hedging investment vehicles. However, the recent approval and launch of Exchange Traded Funds (ETFs) have raised the bar for Bitcoin, sparking speculation about its potential to outperform the traditional investment giant.
Joining the discourse is Cathie Wood, CEO of ARK Invest, who has bullish sentiments regarding Bitcoin’s potential compared to gold.
Is Bitcoin Poised to Outperform Gold?
In a Monday interview, the CEO of investment management firm and Bitcoin ETF issuer ARK Invest highlighted the potential of Bitcoin to replace Gold as a store of value.
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Emphasizing a shift in investor interest from traditional investments to safe-haven assets like Bitcoin, Wood asserted that Bitcoin is a “flight to safety” in times of economic uncertainty, citing the March 2023 U.S. banking crisis that led to a surge in the value of the cryptocurrency.
The upward trend of investor participation is expected to accelerate further, particularly with the accessible and regulated pathway offered by Bitcoin ETFs.
“Relative to Gold, Bitcoin has been rising. There's now a substitution into Bitcoin, and we think that is going to continue now that there is a much easier, less friction-filled way to access Bitcoin,” Wood stated.
The underperformance of Bitcoin following the historic Bitcoin ETF approval was also a focal point of discussion. Wood emphasized that despite the price decline, triggered by the ‘Buy the rumor, sell the news’ event, 75% of the 19.5 million Bitcoin in circulation are in “strong hands” and unmoved, suggesting investors opt for a longer-term outlook.
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Market analysts and investors have echoed the expectation for Bitcoin to experience a bullish run.
Bitcoin Long-Term Bullish with ETFs
Microstrategy’s Michael Saylor has emphasized that the expected “demand shock” triggered by increased market participation in Bitcoin ETFs will coincide with a reduction in Bitcoin supply by the upcoming halving, catalyzing a significant market rally for the crypto giant.
The Bitcoin halving is an event that occurs approximately every four years in the crypto industry, designed to reduce mining rewards to maintain the scarcity of the king crypto.
Anticipated in the second quarter of 2024, the historical potential of Bitcoin halving to ignite a bullish market run has heightened expectations for Bitcoin to demonstrate an outstanding performance and reach new price highs.
The impressive performance of Bitcoin ETFs since launch has also charted an optimistic course for the asset, garnering over $25 billion so far.
On the Flipside
- The volatile nature of Bitcoin often makes it difficult to guarantee performance predictions.
- Research analysts at crypto asset management firm Bitwise have forecasted that Bitcoin will reach a new all-time high price of $80,000 this year.
- Bitcoin is currently wavering at $42,000-43,000, down approximately 13% from its year-high price of $48,000.
Why This Matters
Cathie Wood’s optimism for Bitcoin to outperform gold stokes its credibility as an investment vehicle, aligning with expert predictions for the asset to maintain its progressive performance and solidify its position as a leading store of value in the financial market.
Read more on the comparisons of Bitcoin and Gold in the financial markets:
Wild Bitcoin and Gold Performances Catch Market Off-Guard
Read more on El Salvador’s Bitcoin aspirations and President Bukele’s election victory:
El Salvador Stokes Bitcoin Flames as Bukele Wins Re-election
