ARK Invest founder Cathie Wood remains optimistic that crypto will thrive amid fears of a systemic collapse of the industry.
In a new episode of In the Know podcast, Wood says that the digital asset market is in a better position now compared to a few weeks ago as crypto has been relatively quiet over the last few days.
“I will say that I am feeling a lot better about what’s going on in the crypto world right now. You’ll see our Bitcoin Monthly, I would say we’re neutral to positive. We’re waiting for a few more capitulation signals and, of course, time will tell on the systemic side here. We haven’t heard of another stress signal in the last few days, so that’s good as well.”
She also says that the current market downturn is assuring the long-term outlook of the crypto industry, highlighting that the transparency of the crypto market could have a significant impact in the traditional financial markets.
“What’s happened in the crypto market gives you a sense of why it’s going to work [in the] long run. It’s transparent and there’s a lot more trust in the crypto ecosystem because of the transparency and the overcollateralization than I think there is in the traditional financial markets, and when we wonder why are the CDSes (credit default swaps) are going up on these banks. We wonder about the reach for yield and how leveraged some of these situations are, and we don’t know where they’re hiding, and so maybe that’s all this is.
It’s like, okay, the crypto market has alerted us that this reach for yield went way too far and there are too many excesses, too much leverage around it, hedge funds leveraging 10 to one when yields are 2% so that they can reach their return objectives. Maybe there are some problems out there, and we will find out.”
I
Check Price Action
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/T Studio/Natalia Siiatovskaia