Cathie Wood Predicts Capital Outflows Will Drive Bitcoin's Next Rally, Says AI Can't Replace BTC
ARK Invest CEO Cathie Wood has predicted that capital outflows from unstable countries will drive Bitcoin’s next rally, even as the leading cryptocurrency faces a liquidity drought in the current bear market. In a post on X, Wood stated that while the AI revolution is currently drawing investment away from crypto, it cannot serve as a hedge against inflation the way Bitcoin can.
“AI has launched a technology revolution, deservedly sucking a lot of oxygen out of the investment world, but it cannot serve as the insurance policy protecting wealth that many people in the world are seeking right now,” Wood said.
Her comments align with those of BlackRock CIO Rick Rieder, who noted that Bitcoin faces competition from tech stocks and emerging markets but will ultimately rise in the long term. ARK Invest has previously predicted Bitcoin could reach $1 million by 2030, driven by institutional adoption and its status as digital gold.
ARK Invest’s Director of Research, Lorenzo Valente, remarked that crypto is currently “stuck in the middle”—not as stable as gold nor as exciting as IPO markets. He noted that institutions still view crypto as a risk-on bet, but with lower perceived upside compared to riskier assets like IPOs. This has led to sustained outflows from Bitcoin ETFs, contributing to Bitcoin’s price decline.
Valente echoed Coatue Management founder Philippe Laffont, who said Bitcoin sits between stablecoins and big IPOs: investors seeking stability move to stablecoins, while those seeking higher risk prefer IPOs. Despite current headwinds, Wood remains confident that capital fleeing unstable economies will eventually drive a Bitcoin rally.