ARK Invest CEO Cathie Wood Opines What’s Driving The Crypto Market Correction

According to Cathie Wood, the founder and CEO of ARK Invest, what’s behind the recent crypto market crash is correlated to what’s happening in the equity markets.

In a recent YouTube video, Wood says that macroeconomic uncertainty is moving the USD up, and putting pressure on commodities markets.

According to the ARK Invest CEO, something called a “strike against technology, growth and innovation” is taking place in the stock market – and this is also dragging crypto assets down along with it.

Wood, however, believes that this is merely temporary:

“The dollar going up suggests a flight to safety, and that is a downward force on inflation.
Commodities are priced in dollars. The dollar is going up; all other things equal, commodity prices would go down.
In the crypto markets, we’re seeing a correction. They are starting to succumb to what we’re seeing in the equity market, which is this strike against technology, growth and innovation.
We think that’s going to be short-lived.”

Wood is famous for having a contrarian view on inflation and high equity prices. She believes that the tech and innovation stocks are not in a bubble but instead in “deep value territory.”

“Much like the early years of ARK’s research on and investing in electric vehicles and Bitcoin, disruptive innovation seems to be in deep value territory.
Based on the last eight years of our research, the opportunities will scale from $10-12 trillion today, or roughly 10% of the global public equity market cap, to $200+ trillion during the next ten years.”

Deep Value investors employ a more extreme version of value investing that is characterized by holding the stocks of companies with extremely low valuation measures. Often these companies are particularly out-of-favor or in industries that are out-of-favor.

Last month the ARK Invest CEO said a there is a possible scenario that could drive Bitcoin (BTC) price over 11x from its current value.