$ARK Invest CEO Cathie Wood Sees Disinflation and a Turnaround for BTC
Cathie Wood, CEO of $ARK Invest, believes that technological advancements could create strong disinflation or even deflation in some areas. She pointed to major transformations such as artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing, which she thinks will lower production costs and put pressure on inflation.
Wood argued that the recent rise in US bond yields was largely due to an increase in real interest rates, rather than inflation expectations. She believes this indicates that markets are beginning to price in higher real economic growth, which could be accelerated by the adoption of innovative technologies.
On Bitcoin, Wood noted a significant shift in its performance relative to gold. While Bitcoin is often described as 'digital gold', she pointed out that the long-term correlation between the two assets is quite low, citing $ARK's studies since 2019 which show the correlation remaining at approximately 0.1.
Wood sees this recent change in correlation as a positive sign for Bitcoin, stating 'We believe the turnaround for Bitcoin has occurred.'