Cathie Wood Stands by Bitcoin Amid Criticism: 'Many Lives Ahead'

Cathie Wood defended Bitcoin against criticism from investor Jason Calacanis on X. Wood said Bitcoin has many lives ahead and is a hedge against deflation, but her comments come days after ARK sold over 1.5 million shares of its own Bitcoin ETF.

Wood's case for Bitcoin rests on its ability to mitigate counterparty risk in the face of rising short rates and accelerating economic growth. She noted that private equity firms use short-term loans, which could expose banks to significant risk if short rates rise faster than long rates.

Calacanis, who compared Bitcoin to CDs in the age of Spotify, said it has lost its appeal and is no longer capturing the public's imagination. He pointed out that Bitcoin's price has dropped by 30.75% over the past year, but Wood remains bullish on its prospects.