Cathie Wood makes another significant Bitcoin prediction

After being the first to predict the infamous ‘sell the news’ decline of Bitcoin in January, celebrity stock picker Cathie Wood makes another remarkable prediction about the direction of the largest digital currency.

As a reminder, on the first day of the year we reported to you that Cathie thought there would be some sort of ‘Sell The News’ movement following the approval of a Bitcoin ETF. That happened exactly as she said it would and Bitcoin fell about 20% since the January 10th high of this year before finding support around the $38,500 level. At the time of writing, Bitcoin is trading for $42,000.

Queen of stock market forecasters

Cathie Wood became known as the queen of stock market forecasters in 2020 when she achieved the best Wall Street return of all major hedge funds with her ARK investment fund. She is consistently bullish and focuses on new technologies and crypto in her investment portfolio.

ARK fell in both 2021 and 2022, but partly thanks to Bitcoin’s progress, it performed better than 90% of its peers again in 2023.

Last weekend she was asked by the Financial Times about her choices for 2024.

Gold

She also made another surprise prediction for Bitcoin last week. Cathie thinks the 2024 halving will be very different compared to past halvings, and here’s why.

“The rate of growth in supply is going to be cut in half to just under 1% per year. If you compare this to gold, the gold supply has increased on average roughly 1% per year. Bitcoin’s supply growth is going to drop below that,”

The CEO of Ark Invest said.

She is therefore convinced that many investors who normally bet on gold because the precious metal is in an increasingly smaller supply will switch to Bitcoin in 2024, which will become even scarcer than gold after the halving.

It remains to be seen whether she will be proven right, but even if a very small proportion of gold investors make the switch, this could have major consequences for the largest cryptocurrency.