The rise in Bitcoin's value is attributed to being a safe haven against declining fiat currencies, according to Cathie Wood, CEO of ARK Invest. Wood sees Bitcoin as an investment option in both risky and stable market conditions.

One significant factor driving Bitcoin's popularity is the devaluation of fiat currencies globally. While the introduction of new ETFs in the United States has drawn attention to Bitcoin, Wood believes that the devaluation of currencies like the Nigerian naira and Egyptian pound needs more recognition.

These currency devaluations, caused by government interventions, not market dynamics, have prompted individuals to turn to Bitcoin as a way to protect against loss of wealth due to devaluation. Additionally, Bitcoin acts as an insurance policy against unsound fiscal policies and monetary decisions by governments worldwide.

Despite the focus on ETFs as the driving force of Bitcoin's value, there are other reasons for its increase. Wood remains a strong supporter of Bitcoin, anticipating a substantial rise in value due to institutional money flows. However, she acknowledges that a large portion of the market has yet to embrace Bitcoin as an essential investment tool.