Amidst the critical condition the crypto market is going through, Cathie Wood thinks that it gives a signal of its end itself.
For quite a while now, the crypto market and the stock market have been going through a heavy bloodbath. The top cryptocurrency, Bitcoin (BTC), has lost approximately half of its value since its all-time high that it achieved nearly in November last year, similar happened with almost every other cryptocurrency. Now people are seeking to know if there is an end to this and if it is there when it could come in sight. In such a case, if investors reach experts to have any direction, they get a varied predictions list where some are sure about the collapse further while on the other hand, some are optimistic to see rallies to even new highs.
Cathie Wood is an optimist expert and CEO of a prominent investment management firm. In her recent video on Youtube, Cathie said that everyone knows that this is the bear market, and maybe it is going to end soon when everything starts to act like this. She noted that the market has surrendered in front of harsh situations several times now, for instance, the Russia-Ukraine war, Fed’s interest rate hikes, etc. that too one after another. Cathie said this crypto’s nascent asset class should not look like Nasdaq or other traditional markets, but it does in many aspects.
The founder, CEO, and CIO of Ark Invest has two main reasons to be optimistic and think positively about the end of the crypto bear market anytime soon. First is that she thinks that there is a correlation between crypto and stocks which is an exception and second is that she expects the hawkish moves of the Federal Reserves will come to an end soon.
Now, while considering her visions, several instances support it. As Bloomberg reported earlier, bitcoin mirrored US stocks to an extraordinary extent. However, the team of Ark Invest thinks that this is an expected and normal scenario, and it will get corrected with time. Once, Cathie Wood stated that it is absurd to think that blockchain technology and crypto assets behave similarly to genomic revolution (study of the human genome).
Ark Invest’s CEO further explains that it was at the beginning of the Covid 19 pandemic when cryptocurrencies started mirroring Nasdaq, where there were no correlations between them. Before the pandemic, bitcoin was often a non-correlated asset that could help people diversify their portfolios. The IMF also warned earlier this year that the correlation raised the contamination risk across the market.
ALSO READ: Coinbase Reveal Plans to defend themselves from unstabilized Market Conditions
Source: https://www.thecoinrepublic.com/2022/05/23/what-made-ark-invests-cathie-wood-think-the-crypto-bear-market-is-close-to-an-end/