Bitcoin Bounces Back as Investors Seek Hedge Against Inflation

Bitcoin Bounces Back as Investors Seek Hedge Against Inflation

Bitcoin rebounded Wednesday after a sharp downturn earlier this week as major companies continued to buy the cryptocurrency and hold it as a long-term investment.In early trading, Bitcoin climbed to $51,369, but soon slipped. It recently fetched $49,884.07, up 5.27% in the last 24 hours, CoinDesk reported. Bitcoin had plunged from $58,356 on Sunday, a record high, to as low as $45,501 on Tuesday.Bitcoin is up about 70% year-to-date and has soared about 400% in the last year.A bitcoin ATM is seen inside the Big Apple Tobacco Shop on February 08, 2021 in New York City. (Photo by Michael M. Santiago/Getty Images)

Bitcoin got a boost after Carrie Wood, founder and CEO of New York-based Ark Management, said she was "very positive on Bitcoin" despite this week's volatility."No market is straight up," she told Bloomberg Radio. "Everyone should know that. But probably, the most important use (of Bitcoin) is as an insurance policy around the world against confiscation of wealth. It can happen with inflation. Bitcoin, I think, is the best hedge against inflation out there bar none, better than gold."Wood scored big with winning bets on major technology companies, including Tesla and Square. Ark's main fund gained about 150% last