According to Cathie Wood, CEO of ARK Invest, Bitcoin's impressive 130% surge over the past year can be attributed to the global devaluation of fiat currencies.

Wood pointed out in an interview with CNBC that significant drops in the value of currencies such as the Nigerian naira and the Egyptian pound have been occurring without much attention. She emphasized that amidst this economic volatility, Bitcoin has emerged as a digital asset that could serve as a hedge against instability. Wood described Bitcoin as an insurance policy against unfavorable fiscal and monetary policies enacted by certain governments.

The demand for spot Bitcoin ETFs in the United States further supports Wood's perspective, indicating growing acceptance and integration of Bitcoin into traditional financial markets. The recent launch of the ARK 21Shares Bitcoin ETF on March 28, which saw a record daily inflow of $243.5 million, underscores institutional interest in Bitcoin.

Wood maintains an optimistic outlook on Bitcoin's future, setting a price target of $1.5 million. She views Bitcoin as a financial superhighway with minimal counterparty risk, capable of serving as both a risk-on and risk-off asset.

Wood also highlighted Bitcoin's resilience during regional banking crises in the United States, citing its appreciation in value amidst financial turmoil in early 2023.

In addition, Wood sees potential for Bitcoin to intersect with artificial intelligence (AI), envisioning a transformation in business organization and productivity. She believes that the convergence of Bitcoin and AI could lead to significant cost reductions and productivity gains for companies.