The head of the management company ARK Invest, Cathy Wood, said that this week cryptocurrencies became protective assets in the context of the banking crisis in the United States.
This debacle would not have been possible in the decentralized, transparent, auditable, and over-collateralized crypto asset ecosystem. Indeed, during the last week, crypt assets behaved like safe havens: along with gold, their prices appreciated.
— Cathie Wood (@CathieDWood) March 16, 2023
“This failure would not have been possible in a decentralized, transparent, verifiable and super-secured ecosystem of crypto assets. Indeed, over the past week, cryptocurrencies have acted as safe havens: their prices have risen along with gold,” she wrote.
Wood has also criticized US regulators for using the crypto industry as a scapegoat to justify their own failures to oversee the traditional banking system.
She opposed multiple increases in the key rate by the US Federal Reserve (Fed) in 2022. By February 2023, the rate increased to 4.5-4.75% per annum.
“Cryptocurrency did not force Silicon Valley Bank and Signature Bank into bankruptcy. In my opinion, Fed policy was the main culprit. Due to the drought in the venture capital market and higher fund returns, deposits have left the US banking system,” wrote the CEO of ARK Invest.
According to Wood, regulators can prevent the US from “taking part in the most important stage of the Internet revolution.” She believes that the crypto industry could leave the country, depriving it of “one of the most important innovations in history.”
Recall that in February, Wood called bitcoin the best form of protection against loss of wealth and an insurance policy for developing countries.
In October 2022, the head of ARK Invest said that she predicted an increase in the capitalization of the first cryptocurrency to $4.5 trillion, when the asset was trading at $250. At the time of writing, the figure is $525 billion, according to CoinGecko.
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