Cathie Wood: Bitcoin Stabilizes Against Gold

ARK Invest founder Cathie Wood stated that the recent U.S. employment report appears concerning, but economic trends are changing. Improvements in productivity, the expansion of AI applications, and potential deflationary pressures may become the main themes in the market moving forward. The U.S. federal budget deficit is approximately 5.6% of GDP, nearing levels seen during the Reagan era in the 1980s, and is expected to drop to around 5% by the end of the year. Regarding inflation, Wood believes the market is underestimating deflation risks, as recent inflation data has come in below expectations, with the June CPI declining by 0.4% month-on-month and the PPI down by 0.3%. The core PCE only increased by 0.1% month-on-month. Companies that fail to adopt AI and productivity tools may face greater pricing pressures and competitive risks. Wood is optimistic about the dollar's performance, predicting that the dollar index could rise to 102.6 this year, countering the view that foreign capital is selling off U.S. assets. She noted that Japan's recent intervention in the currency market mainly involved selling euros and buying yen. In the energy market, Wood believes a trend of global crude oil oversupply is forming, with UAE's production rising to historical highs after its exit from OPEC, and falling oil prices could drive global economic deflation. Regarding the AI investment boom, Wood stated that concerns about an AI bubble are exaggerated, and the current growth in capital expenditure may represent the early stages of a long-term technological revolution. In the realm of crypto assets, Wood pointed out that Bitcoin's performance relative to gold is stabilizing, believing that Bitcoin and stablecoins may become the biggest beneficiaries of the development of the smart agent economy.

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