Cathie Wood's investment firm Ark Invest remains optimistic about Bitcoin despite the market decline in March.
Ark Invest's Position on Bitcoin
Ark Invest, managing $6 billion in assets, reassured investors about its long-term optimism for BTC. The firm believes that policy changes and technological breakthroughs in areas such as artificial intelligence and robotics are revitalizing spending and boosting productivity.
Impact of Technology and Regulation
While the firm did not provide specific data on how AI and robotics will increase Bitcoin's value, previous research suggested that the convergence of AI and cryptocurrencies could add $20 trillion to the global economy by 2030. Ark Invest also pointed to deregulation and tax cuts as potential catalysts for Bitcoin's recovery. US President Donald Trump has vowed to cut taxes and ease crypto regulations, moves that could impact investor sentiment.
Prospects After Market Instability
Despite these promises, Bitcoin fell below $80,000 this week for the first time since November. Investor sentiment continued to falter as market participants pulled $430 million from U.S. spot Bitcoin exchange-traded funds (ETFs). Ark Invest's own Bitcoin ETF, ARK 21Shares, led the decline with $147 million in outflows. The firm currently operates six cryptocurrency ETFs. Nevertheless, Ark Invest believes the market is entering an extremely bearish period.
Despite challenges, Ark Invest remains confident in the long-term recovery of the Bitcoin market.
