ARK Invest CEO Cathie Wood challenged the de-dollarization narrative on Thursday, stating that foreign holdings of US Treasuries continue to rise despite selective selling by some central banks. Wood explained that recent Treasury sales by countries such as Japan and Turkey were primarily currency-defense measures rather than a broad retreat from the dollar, citing Japan's efforts to support the yen trading near 40-year lows around 162 per dollar. The argument comes amid ongoing debate over the dollar's global dominance and central bank reserve diversification strategies.
Wood stated in ARK Invest's latest "In the Know" that the data do not support the view that central banks are broadly dumping US Treasuries. She characterized recent selling as currency-defense moves rather than a wholesale exit from the dollar. Wood reiterated a dollar-positive stance overall, tying it to US fiscal policy, deregulation and corporate tax cuts, and said talk of the end of American exceptionalism was greatly exaggerated, citing SpaceX, OpenAI and Anthropic as examples of US innovation leadership.
April Treasury Data Shows Foreign Official Buyers
Treasury International Capital data for April showed foreign official institutions were net buyers of $41.6 billion of long-term US securities. Foreign residents bought a net $206.0 billion in long-term US securities in April. Official inflows totaled $49.2 billion for the month, though private foreign flows turned negative.
Wood Frames US as Technology-Driven Deflationary Economy
Wood's de-dollarization comments came alongside her wider case that the US is entering a technology-driven deflationary boom, with productivity accelerating and inflation running lower than official measures suggest. On crypto, Wood has continued to favor Bitcoin over gold as a long-term holding, saying earlier she would shift from gold to Bitcoin even as gold outpaced Bitcoin. She has maintained a long-term Bitcoin price target of $1.25 million within five years, framing the token as an insurance policy against currency debasement.
Bitcoin Implications and Retail Sentiment
Wood's data-driven rebuttal suggests that the dollar exodus underpinning the Bitcoin hedge case is not yet visible in official numbers. The de-dollarization story is a central plank of the case for BTC as a fiat alternative. Continued reserve rotation has benefitted gold over Bitcoin. Bitcoin's price was up over 1% during the past 24 hours. On Stocktwits, retail sentiment around BTC remained in the 'neutral' zone, while chatter around it shifted to 'normal' from 'low' over the past day.
FAQ
What did Cathie Wood say about de-dollarization on Thursday?
Cathie Wood stated on Thursday that foreign holdings of US Treasuries continue to rise despite selective selling by some central banks, arguing that recent sales by countries such as Japan and Turkey were currency-defense measures rather than a broad retreat from the dollar.
What did April Treasury data show about foreign official institutions?
April Treasury International Capital data showed foreign official institutions were net buyers of $41.6 billion of long-term US securities, with foreign residents buying a net $206.0 billion in long-term US securities during the month.
What is Cathie Wood's Bitcoin price target?
Cathie Wood has maintained a long-term Bitcoin price target of $1.25 million within five years, framing Bitcoin as an insurance policy against currency debasement.
