The devaluation of crypto assets may be positive for the crypto market. According to the founder of Ark Invest, Cathie Wood, the volatility in prices has been reduced in the past week.
In an interview with the podcast “In The Know”, the founder of ARK Invest comments that the current moment represents from neutrality to a positive path for crypto assets.
For her, there are no signs that the crypto market will suffer another major devaluation. Although Wood waits for some indicator of bitcoin capitulation, the trend is for appreciation in the long term.
Thus, while stating that the fall of crypto assets is beneficial for the sector, the founder of Ark Investments attests that this devaluation indicates how the market should behave in the future.
She also states that digital currencies have much more transparency than traditional financial market investments. Cathie also explained what may have caused the devaluation of the major crypto assets.
There were many leveraged positions of hedge funds looking for high returns with digital currencies. However, this pursuit of profit exceeded the market cap, which would have caused a significant drop in prices in June 2022.
Cathie Wood became known as the “Queen of Investments” in the financial market. She hit a forecast on Tesla’s stock appreciation last year.
In addition, the founder of Ark Invest predicted the price of bitcoin. She believes that the crypto asset will reach up to US$1 million by 2030, assuming the asset’s long-term appreciation.