It should be noted that Bitcoin managed to jump to a local high of $24,255 this week. This came after Fed officials raised the key interest rate by 25 basis points, the lowest rate of increase in eleven months.

The market is experiencing a small correction this afternoon, which seems logical after such an intense rise. The market situation looks like this.

Changes in rates of top cryptocurrencies by market capitalisation

Note that Bitcoin is also doing well with its fundamentals. This is especially evident in the record ratio of BTC held by long-term investors (in blue) to short-term investors (in red). In the former, they hold the coins for more than six months, while in the latter they hold them for less.

Ratio of bitcoins held by long-term and short-term investors

As a result, long-term investors now hold 78 per cent of all coins – a record figure. Accordingly, short-term ones account for 22 per cent.

The trick is that long-term hoarders know how to wait and are not eager to get rid of their savings. Consequently, the so-called sellers’ pressure – that is, the volume of cryptocurrency being sold – becomes less. This is certainly a good thing for the asset, as it gives it more reasons to grow.

It is also important to note that only 7 per cent of bitcoins in circulation moved in the last month as a whole. This means that investors are counting on the long term and thus creating conditions for further market growth.

The volume of bitcoin supply that is being moved

What is the value of Bitcoin

Here is one of Wood’s quotes published by the news outlet Decrypt.

There is hyperinflation around the world as traditional currencies depreciate. People need a backup – an insurance policy in the form of Bitcoin.

ARK Invest CEO Katie Wood

The cryptocurrency’s maximum supply will never exceed the 21 million BTC mark, with quite a few coins already permanently lost. According to Katie, it’s a great tool to protect your own capital from rising inflation around the world. Bitcoin has also performed well under pressure from various governments.

For example, in 2021, the Chinese government officially banned Bitcoin mining in its territory and virtually “killed” the activities of local cryptocompanies. Nevertheless, a significant number of Chinese miners are still operating in the country, trying not to draw much attention to themselves. Accordingly, bans on digital assets essentially do not work – and this is further proof of their potential.

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A slightly different view is held by billionaire and Bridgewater Associates founder Ray Dalio. In an interview on CNBC, he called traditional currencies “sabotage” of effective capital preservation. However, Dalio doesn’t think Bitcoin or Stablecoin can be a one-size-fits-all solution to the problem. Here is his rejoinder, cited by Cointelegraph.

We live in a world where money as we know it is under threat. We print too much, and it’s not just the United States, but all reserve currencies.

Ray Dalio, founder of Bridgewater Associates

However, even Bitcoin’s achievements over its entire existence are allegedly not enough to consider it an effective form of money, Dalio believes. He continues.

It will not be an effective medium of exchange. Nor is it an effective means of preserving capital.


We disagree with this statement: the long-term growth of the BTC price over the last decade has shown that the main cryptocurrency does a fine job of capital appreciation. Still, even one dollar invested in Bitcoin in 2009 would have turned into millions today, which cannot be said about popular assets for investing like stocks or gold.

That said, using the first cryptocurrency for day-to-day payments can indeed be inconvenient. Transactions in BTC take quite a long time, well, even experienced crypto users, let alone beginners, sometimes can't figure out the second-level Lightning Network solution for instant and fast transfer of value. Perhaps, in this case, the familiar Phantom wallet and the more productive Solana blockchain will be the way out.


Phantom Wallet


We think Katie Wood's position is more than justified. The events of recent years have shown that the actions of central banks in various countries can be short-sighted and lead to serious inflation, affecting all citizens. Therefore, digital assets with predictable inflation and limited supply could indeed be considered as a risk mitigation tool. In addition, some cryptocurrencies are deflationary - that is, with declining supply over time. And this is a good feature for the future.

What's particularly pleasing: Katy's actions are indeed in line with its stance. In particular, investment giant Ark Invest is known for large positions with shares in cryptocurrency exchange Coinbase. So here, even critics of digital assets won't be able to pick on Wood's comments.