Cathie Wood: Crypto assets have become a safe haven amid the banking crisis.

ARK Invest CEO Cathie Wood said that this week cryptocurrencies have become safe-haven assets amid the banking crisis in the United States.

This debacle would not have been possible in the decentralized, transparent, auditable, and over-collateralized crypto asset ecosystem. Indeed, during the last week, crypt assets behaved like safe havens: along with gold, their prices appreciated.

— Cathie Wood (@CathieDWood) March 16, 2023

“This collapse would have been impossible in the decentralized, transparent, auditable, and over-collateralized ecosystem of crypto assets. Indeed, in the past week, cryptocurrencies acted as safe havens: their prices rose along with gold,” she wrote.

Wood also criticised US regulators for using the crypto industry as a \”scapegoat\” to justify their own failures in regulating the traditional banking system.

She opposed the Fed’s multiple rate hikes in 2022. By February 2023 the figure rose to 4.5–4.75% per annum.

“Crypto did not force Silicon Valley Bank and Signature Bank into bankruptcy. In my view, Fed policy was the main culprit. A drought in venture funding and higher fund yields pushed deposits out of the US banking system,” wrote the ARK Invest CEO.

According to Wood, regulators could prevent the United States from participating in the most important stage of the internet revolution. She argues that the crypto industry could leave the country, depriving it of one of the most important innovations in history.

Earlier in February, Wood called Bitcoin the best form of protection against the loss of wealth and as an insurance policy for developing countries.

In October 2022, the head of ARK Invest said that predicted Bitcoin’s market capitalization to rise to $4.5 trillion when the asset traded at around $250. As of writing, the figure stood at $525 billion, according to CoinGecko.