Why Cathie Wood Considers Bitcoin and Ethereum Great Assets for Diversification in 2022 – Bitcoin – US Dollar ($BTC), Ethereum – US Dollar ($ETH)

Ark Invest CEO and Founder Cathy Wood takes stock of the recent corrections observed in the prices of Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO:ETH) and discussed their usefulness for diversification purposes in the latest episode of the company’s “In the Know” podcast.

Why Crypto is down: Wood said that more and more hedge funds are involved in Bitcoin and Ethereum and – with the contraction seen in regular markets – a higher correlation in cryptocurrency prices is visible.

However, over the entire market cycle, this correlation is “extremely low,” according to Wood.

See also: How to buy bitcoins (BTC)

Interesting for diversification: This low correlation to other assets makes cryptocurrencies “a very attractive asset” for diversification purposes, Wood said.

The hedge fund manager broke Ark’s understanding of cryptocurrencies in three ways:

• Monetary revolution
• A financial revolution
• And the next generation of the Internet or the metaverse revolution

In January, Ark analyst Yassine Elmandjra had pointed out “the velocity of fiat currencies”, which could aggravate inflation and currency devaluation.

At the time, Ark Invest said that if Bitcoin could capture just 5% of the global monetary base beyond the largest of the four fiat currencies, its market capitalization could triple to $2.8 trillion by 2027.

Read more : Bitcoin Crosses $42,000 Level, Ethereum Above $3,000 as Dogecoin and Meme Coins Shine Too – Why Crypto Market Pressure Still Hits