Famous Whale Said “This Event Is Bull For Bitcoin”!

In line with what renowned author Robert Kiyosaki said during the week, ARK Invest CEO Cathie Wood suggests that the global economic crisis will be the trigger for the next Bitcoin bull.

Institutional Bitcoin whale describes the right environment for the next bull

ARK Invest Management, led by Cathie Wood, used the week’s drop caused by SEC lawsuits as a buying opportunity. In a recent Bloomberg interview, CEO Cathie Wood is now doubling down on her predictions for Bitcoin. The famous Bitcoin supporter suggested that the leading crypto will reach 7-digit prices in the next bull.

Wood bases his expectation on the strength of Bitcoin in crisis environments. In his Bloomberg interview, he stated that the global economic environment will benefit cryptocurrencies, especially BTC. He also said that he is confident that his goal of $1 million for Bitcoin will be achieved.

According to ARK Invest CEO, the inflationary environment and supply chain issues are strengthening Bitcoin’s ‘safe haven’ stance:

The more uncertainty and volatility there is in global economies, the greater our confidence in Bitcoin. One of the reasons is that we just had an inflationary scare. We think this is largely supply chain focused and Bitcoin is a hedge against inflation.

“Not just inflation”

The ARK Invest CEO later said that a deflationary macroeconomic environment is on the way. However, he states that Bitcoin will have another purpose beyond acting as a buffer against inflation:

We now also believe that the bigger risk is deflation, not inflation. Why would Bitcoin do well in this situation? It will do well as it is an antidote to counterparty risk in the traditional financial system. In the Bitcoin Blockchain, everything is transparent and perhaps pseudo-anonymous. We can also see all transactions, all activities and therefore we understand much better how little counterparty risk is in the Blockchain world.

Recent developments in the US may hinder Bitcoin predictions

During the week of June 5, developments from the actions of the SEC raised concerns about how the US might affect Bitcoin and other cryptocurrencies. Many altcoins have been declared securities as part of lawsuits against Binance.US and Coinbase, which has Bitcoin and altcoin investors worried about the possible consequences.

However, recent data from Glassnode has shed light on the situation. According to the data, the influence of the US market on Bitcoin is decreasing.

There is also a notable difference when looking at the supply metric and comparing BTC supply changes from year to year in different regions. The overwhelming dominance of U.S. organizations in the 2020-2021 period is reversing. Supply dominance in the US has dropped 11% since mid-2022. By contrast, European markets have remained relatively neutral over the past year. On the other hand, a significant increase in supply dominance was observed during Asian trading hours.

Will BTC supply in the US drop further?

On June 9, Binance.US informed its users about the impact of the SEC’s crackdown, which led to the suspension of certain services. As quoted by Kriptokoin.com, Binance has decided to temporarily suspend US dollar deposits.

Additionally, it announced to customers that Binance.US will become a fully crypto-focused exchange starting June 13. As a result, Bitcoin holders in the United States will no longer be able to directly withdraw or deposit funds from their bank accounts. This development further reduces the region’s BTC supply dominance and weakens its influence on the market.