Cathie Wood Maintains $1.25 Million Bitcoin (BTC) Forecast... Refutes Dollar Collapse Theory

▲ Cathie Wood, Bitcoin (BTC), Gold/ChatGPT Generated Image

As Cathie Wood directly refuted fears that central banks worldwide are abandoning the dollar, Bitcoin's (BTC) 'currency depreciation insurance' logic has unexpectedly been put to the test.

According to Stockwitz, a financial market specialized media outlet, on July 4 (local time), ARK Invest CEO Cathie Wood stated in a recent video that, contrary to claims of central banks broadly selling U.S. Treasury bonds, most foreign holdings of Treasury bonds have increased. Wood interpreted sales by countries like Japan and Turkey not as a complete exit from dollar assets, but as measures to defend their domestic currencies. She specifically cited Japan's situation of trying to defend the yen after it fell to around 162 yen per dollar.

International capital statistics from the U.S. Treasury Department also supported Wood's claims. In April, foreign public institutions, including central banks, net-purchased $41.6 billion in long-term U.S. securities, while foreign residents' net purchases of long-term U.S. securities amounted to $206 billion. In the same month, public sector capital inflows recorded $49.2 billion, but private foreign capital flows turned negative, making it difficult to interpret the de-dollarization debate as a simple trend of Treasury bond sales.

Wood maintained a positive outlook on the dollar, citing U.S. fiscal policy, deregulation, and corporate tax cuts. She also presented SpaceX (SPCX), OpenAI (OPEAZZX), and Anthropic (ANTHZZX) as examples demonstrating America's innovation competitiveness, stating that "talk of the end of American exceptionalism is greatly exaggerated." She also forecasted that the U.S. economy could enter a technology-driven deflationary boom and accelerate productivity.

Despite the strong dollar argument, Wood's long-term outlook for Bitcoin remained unshaken. Wood previously stated her preference for Bitcoin over gold and maintains a long-term target that Bitcoin could reach $1.25 million within five years. This view sees Bitcoin as insurance against currency depreciation.

However, Stockwitz pointed out that while de-dollarization is one of the key arguments supporting Bitcoin's narrative as an alternative to fiat currency, official statistics have not yet confirmed a widespread exodus from the dollar by central banks. There has also been a trend where gold has benefited more than Bitcoin in the process of reserve asset shifts. As Wood's dollar optimism and Bitcoin's $1.25 million forecast are simultaneously maintained, the market's focus is shifting more towards long-term currency depreciation risks rather than de-dollarization.

[Article Key Summary]

-Cathie Wood refuted de-dollarization claims that central banks are broadly selling U.S. Treasury bonds, stating that official statistics do not support them.

-In April, foreign public institutions net-purchased $41.6 billion in long-term U.S. securities, and foreign residents' net purchases amounted to $206 billion.

-While maintaining a positive outlook on the dollar, Wood upheld her $1.25 million Bitcoin forecast within five years, valuing it as an asset against currency depreciation.

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