Ark's Wood on Bitcoin, Fed Rate Cuts, Support for Crypto

Cathie Wood, the founder, CEO and chief investment officer of ARK Investment Management, still says Bitcoin will hit $1.5 million per coin by the year 2030. Wood also talks about the stocks she is buying, how many times the Federal Reserve will cut interest rates this year, President Donald Trump's support for crypto and the future of memecoins. She is on "Bloomberg Crypto." (Source: Bloomberg)

Cathie Wood, the founder, CEO and chief investment officer of ARK Investment Management, still sees Bitcoin hitting $1.5 million per coin by the year 2030.

While appearing on "Bloomberg Crypto," the investor also discussed the stocks she is buying, how many times the Federal Reserve will cut interest rates this year, President Donald Trump's support for crypto and the future of memecoins.

Watch the full interview here:

Cathie Wood: Bitcoin Price Prediction & Trump's Crypto Support

ARK's flagship fund, the ARK Innovation ETF (NYSE:ARKK), fell 65.8% in 2022, while the Bitcoin price dropped about 64% from its all-time high.

The investor explained that in a low-rate, low-inflation environment, high-growth stocks and cryptocurrencies can command high multiples.

"We are now seeing the potential for low-inflation, low-interest-rate in the second half of the year," said Wood. "So I think you'll see a recovery in those high-growth, high-multiple sectors."

As for interest rates, the economist predicts that the Fed will cut interest rates by 50 basis points in May and another 50 basis points in July.

"I think the Fed is going to get skittish in the second half of the year with the unemployment rate remaining low in the 3.5% to 3.8% range, and we'll start to see some strength in the consumer-price index."

On the topic of crypto, Trump announced his support for major cryptocurrencies such as Bitcoin, Ethereum and Bitcoin Cash in an interview with the "Pivot" podcast.

"I think it's interesting, it's a big factor, and it can be a positive factor," said Trump on crypto. "I like Bitcoin, I think it's a great asset, and I think they're going to have a shot at some major cryptocurrency in the United States."

When asked about his thoughts on memecoins, Trump replied that he doesn't want to get involved in any "small potatoes."

"I'm not a small-potatoes, petty-cash, petty-coin fan. I like big ideas, and I think cryptocurrency is a big idea."

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