ARK Invest founder Cathie Wood believes in the great potential of cryptocurrencies. In recent weeks, the digital asset market has been on a downturn, but Wood says the growing correlation between cryptocurrencies and traditional assets indicates that the bear market is about to end.
In a new video update analyzed by The Daily Hodl, Wood says the bottom for risky assets like Bitcoin and cryptocurrencies is likely near. Her prediction comes as the price of the leading crypto asset, Bitcoin, moves down in tandem with the stock market, which Wood says is a temporary phenomenon.
“Crypto, a new asset class, should not look like the Nasdaq, but it does. It's highly correlated right now. You know you’re in a bear market and maybe close to the end when everything starts acting alike, and we’re seeing the capitulation of one market after the other.”
Despite the current downturn, Wood says she remains long-term confident in crypto because, like the rest of ARK’s investment picks, she sees it as something that will exponentially grow as it disrupts markets and societies.
“Given the readiness in the equity markets and the bond markets today and now increasingly commodities 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 are going to transform the world and are entering exponential growth trajectories now. This is not about five years from now. We are now living the reality that was only a dream in the tech and telecom bubble.”
According to Wood, blockchain is among a group of sectors that offer opportunities for exponential growth. She sees these sectors collectively exploding 21x over the next seven to eight years.
“I’ve been around in the business for 45 years, and I’ve never seen the opportunities I see now. According to our expectations, truly disruptive innovation, which right now is valued in the global public equity markets at roughly $10 trillion, roughly 10% of the global equity market cap.
We believe that $10 trillion is going to scale to $210 trillion by the year 2030… thanks to genomic sequencing, robotics, adaptive robotics, energy storage, artificial intelligence and blockchain technology.”
© 2022, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.