Bitcoin back below $ 35,000 – Wood expects “more and more redeployment
No relaxation at the weekend for crypto investors after another stressful week. The Bitcoin price slipped by almost three percent to $ 34,633 on Saturday. Star investor Cathie Wood remains completely cool despite the extreme fluctuations. The performance of money will give Bitcoin a boost.
“We’re not worried about inflation,” said the founder and head of Ark Investment Management at the CoinDesk’s Consensus 2021 Conference. “We tend to believe that the likelihood of deflation is much higher.”
In her opinion, now, after the lockdown, people will primarily demand services. Meanwhile, dealers who have ordered two, three or even fourfold replenishments would not get rid of their goods. The consequence would be falling prices.
In this deflationary world, Bitcoin would “definitely have a place”.
Investors in emerging markets, where the value of money is closely linked to the development of commodity prices, could fuel the Bitcoin price. “Then more and more people would switch to crypto currencies or other assets there,” says Wood. “I wouldn’t be surprised if even the central banks in some emerging markets bought bitcoin.”
In the medium to long term, THE SHAREHOLDER shares Woods’ Bitcoin optimism. In the short term, however, it is likely to remain rough, the sentiment is tarnished due to political advances for more regulation and Elon Musk’s Twitter antics. Investors should therefore be prepared for continued strong volatility.