Bitcoin price prediction. Ark Invest CEO Cathie Wood evaluated the SEC’s lawsuit against two cryptocurrency exchanges, Binance and Coinbase, in the USA. While Wood argued that Coinbase would be free from competition as a result of the lawsuits, bhe said that he stood by her prediction that Bitcoin would reach $1,000,000.
Ark Invest founder and CEO Cathie Wood said that the legal problems experienced by Binance Holdings in the USA will eliminate Coinbase Global’s main rival, thus benefiting the company.
The world’s two largest cryptocurrency exchanges are reportedly under regulatory pressure after the US Securities and Exchange Commission (SEC) sued both companies for allegedly selling unregistered securities.
In an interview with Bloomberg TV, Wood said, “Binance is coming under increasing scrutiny for many criminal activities, including fraud, which means the competitive environment for Coinbase is disappearing. “This is a good thing for Coinbase in the long run,” he said.
Stating that Coinbase has not been accused of any criminal activity, Wood said, “There are questions about what a security is, what a share is, these are two questions that Coinbase and Binance are both facing, but most of the problems facing Binance apply to Coinbase.” “It’s not,” he said. Wood’s statements came after Ark Investment’s funds increased their holdings in Coinbase after the company’s shares fell following the SEC’s actions.
Ark is Coinbase’s fourth-largest shareholder and has been increasing its stake with every decline for nearly a year. Wood said she is still confident in his $1,000,000 target for Bitcoin and said the more uncertainty and volatility in global economies, the more Ark’s confidence in the cryptocurrency grows.
The famous investor said, “We have recently experienced an inflationary fear. We think this is largely supply chain focused and Bitcoin is a hedge against inflation.” “However, we also believe that the big risk from now on is deflation, not inflation. So why should Bitcoin perform well in this case? Because Bitcoin is an antidote to counterparty risk in the traditional financial system,” she said.
Wood had faced criticism after his flagship ETF divested its stake in Nvidia Corp. in January and missed an epic rally that briefly pushed the chip maker past $1 trillion in market value. Wood said he stood by his decision, citing concerns about the computer chip industry’s boom-bust cycle.
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