Ark Investments CEO Kathy Wood reiterated her $1 million price target for Bitcoin at the Bitcoin 2022 conference in Miami on Thursday, calling the cryptocurrency "a great hedge against inflation."
Bitcoin fell slightly to $433,000 in early trading, up nearly 3% from the same time last month, but is down 9% year-to-date and 25% year-to-date. As of press time, it was quoted at $42894 / coin.
"Bitcoin would be a good hedge against inflation if it were to get worse," Says Mr Wood. Inflation is soaring to its highest level in 40 years as the US economy suffers from continued supply chain disruptions and geopolitical tensions. While bitcoin's price is highly volatile, Mr Wood points to research showing that 70 per cent of bitcoin investors hold a position for more than six months and that liquidity has jumped tenfold.
Wood stressed that while the number of investors accepting bitcoin has increased, there is still a long way to go before it is fully accepted. And the price of bitcoin is volatile, which is scary for investors. As a new asset class, it would be very risky to get involved.
In addition, Treasury Secretary Janet Yellen "has changed her tune" in a major speech on digital assets on Thursday, according to a change of language. "That's a positive for the currency," Wood said. A year ago, Yellen's comments on Bitcoin were known to have focused on money laundering and environmental damage. Speaking alongside Wood, MicroStrategy(Mstr.us) CEO Michael Thaler also stressed that he's more bullish on bitcoin than ever.