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ARK Invest’s Cathie Wood ‘not surprised’ at crypto market rebound

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Cathie Wood, the founder and CEO of ARK Invest, said that more regional banks could fail if the ongoing banking crisis in the U.S. isn’t resolved.

Wood looked back at the factors that led to Silicon Valley Bank and Silvergate to close down during the weekend, noting that it was the Federal Reserve’s responsibility to address the issue. She warned that focusing on lagging indicators like the CPI could steer the Fed away from the root cause of the problem — deflation in the economy caused by the inverted yield curve.

Having more regional banks fail would further centralize the banking system in the U.S., she said, adding that the nationalization of the banking system is also a plausible risk.

The failure of three large crypto and tech-focused banks further cemented Wood’s optimism when it comes to crypto.

She said that neither she nor the rest of the team overseeing crypto investments at ARK has been surprised at the current crypto market rebound.

The market took a hit earlier this week as rumors about Silvergate’s potential insolvency shook investor confidence. After dropping below $20,000 and dragging the rest of the market with it, Bitcoin regained $22,000 as news about Signature bank broke late Sunday night. Ethereum and the rest of the altcoin market followed, posting uncharacteristic returns in the wake of unprecedented market turmoil.

Wood believes Bitcoin and Ethereum rebounded as the blockchain networks they’re based on are decentralized, transparent, and auditable.

“Banks are not and, in the last few days, have become less so,” she said. “Regulators have focused investors on the threat that crypto poses to users, but this weekend turned that theory upside down.”

Cathie Wood’

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Author: Andjela Radmilac

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