Wood Defies 'Dead Cat' Warning, Says Bitcoin is Ultimate Insurance Policy

Cathie Wood recently sent a bullish response to a warning that Bitcoin is a 'dead cat'. According to her, Bitcoin is far from being a dead asset and it's actually an ultimate insurance policy against a looming financial collapse. The reason behind this assertion lies in the fact that most people view Bitcoin as an inflation hedge, but its true value emerges during deflation.

Wood emphasizes that AI-driven productivity will lead to a significant increase in GDP to 8%, resulting in deflation and rising interest rates. This scenario will trigger massive counterparty defaults in traditional banks and private equity. However, she believes that only Bitcoin's decentralized nature will survive when the institutions we trust go bankrupt.

She implies that Bitcoin could be the only safe exit from this impending financial disaster. Wood's statement comes as a direct response to the 'dead cat' warning, which suggests that Bitcoin is essentially lifeless and has no value.