• Cathie Wood, the founder and CEO of Ark Invest, repeated her prediction that Bitcoin (BTC-USD) will eventually top $500,000 and said she sees a long-term deflationary trend, despite the recent post-COVID spike in prices.
  • Speaking at a business conference on Monday, Wood also explained a recent sale of Tesla (NASDAQ:TSLA) stock, saying the decision to reduce her stake by 180,000 shares was a “tactical move” based on near-term market fluctuations.
  • The famed investor told the SALT Conference that she sold the TSLA shares to raise cash in order to buy stock in UiPath (NYSE:PATH), which had dropped sharply that day in the wake of its quarterly results.
  • Wood reported that even after the sale, TSLA remains the largest holding in her portfolios.
  • Commenting on Bitcoin, Wood based her $500,000+ prediction on the assumption that institutional investors will start increasing their holdings of Bitcoin and other cryptocurrencies.
  • Wood said she expected corporations to eventually diversify some of their cash holdings into crypto as well.
  • As to her view on inflation, Wood suggested that the recent explosion in inflation expectations has come about because of near-term supply constraints caused by the reopening of the global economy following the COVID crisis.
  • Longer-term, she expects prices to decline.
  • “We’re probably, when all is said and done, and the dust clears from the supply chain problems and everything, we’re probably in a  highly deflationary world,” she said.
  • In the near term, Wood expects the market to be “incredibly confusing.” She attributed this confusion to the tension between the long-term deflationary trend and the near-term spike in inflation.
  • For more on Cathie Wood’s latest moves, check out a new policy for her ARK Next Generation Internet ETF (NYSEARCA:ARKW), which has now given itself the authority to buy Canadian Bitcoin ETFs.

By block head

Block Head is a blockchain journalist.