Cathie Wood Says ‘Bitcoin Is Not A Dead Cat’, Days After ARK Sold Its Own Bitcoin ETF

Bitcoin is a “hedge against deflation,” Wood said on ARK’s Bitcoin Brainstorm podcast.

• Cathie Wood told investor Jason Calacanis that Bitcoin is 'not a dead cat' and 'has many lives ahead.
• ARK sold more than 1.5 million shares of its Bitcoin ETF on Monday.
• Wood said private equity businesses use short-term loans, and short rates would rise quicker than long rates, and exposed banks "could be in question."

Bitcoin (BTC) is “not a dead cat,” Cathie Wood responded to investor Jason Calacanis on X Friday. “It has many lives ahead,” she remarked.

Calacanis wrote on X that "the dead cat continues to bounce," calling Bitcoin a “boring store of value” that he said was "no longer capturing the public's imagination." He compared Bitcoin to “CDs in the age of Spotify.” Along with it, Calacanis shared a chart showing Bitcoin has been down 30.75% over the past year.

Calacanis also heard from Strategy’s (MSTR) Michael Saylor on Friday. Saylor said Bitcoin is now “a $1.6 trillion success. He wrote that "preserving wealth across generations is a bigger ambition than entertaining a dinner party." 

Bitcoin’s price was trading at $81,312, up over 1% in the last 24 hours. On Stocktwits, retail sentiment around BTC remained in the ‘bearish’ zone, while chatter stayed at ‘normal’ over the past day. 

Wood’s Case For Bitcoin As Deflation Play

In an episode of ARK’s Bitcoin Brainstorm podcast, including Bitcoin Park, Wood presented a separate case for Bitcoin. Wood said AI is “highly deflationary. She said real GDP growth is projected to accelerate to 7% or 8% from around 3%.

Rates will go up as the economy picks up, Wood said. That would generate counterparty risk, she argued. She alluded to private equity firms that load their companies with short-term debt. Short rates will go up faster than long rates, she warned, and banks with exposure “could be in question.”

That’s why Bitcoin is more than a hedge against inflation, Wood added. She called it “a hedge against deflation” since “there is no counterparty risk. “Every time ARK has a Bitcoin Brainstorm, I feel more confident on Bitcoin,” she said.

However, Wood’s comments come days after ARK sold more than 1.5 million shares of its own ARK 21Shares Bitcoin ETF (ARKB). ARK sold shares in its ARK Next Generation Internet ETF and ARK Fintech Innovation ETF on Monday. By Monday’s end, the sale was valued at around $40 million. It was the week's biggest trade by volume as of Friday morning. On the same day, ARK also sold shares in Coinbase (COIN), Circle (CRCL), Bitmine Immersion Technologies (BMNR) and Bullish (BLSH).

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