Bitcoin Surges Against Gold as Cathie Wood Sees 'Turn' in Favour of BTC

ARK Invest CEO Cathie Wood believes that the 'turn is in' for Bitcoin against gold, according to a recent episode of In the Know. Bitcoin has been outperforming gold significantly since mid-August, with a gain of over 30% compared to a decline of nearly 5% for gold. Wood pointed to ARK's long-term correlation data, which showed a reading of 0.1, indicating little to no correlation between the two assets. The correlation has since turned negative, indicating that Bitcoin and gold are moving in opposite directions.

Wood tied her view to a wider call on inflation, stating that ARK's innovation themes, such as blockchain and AI, could drive inflation far lower than anticipated. She also referenced the recent Personal Consumption Expenditures (PCE) report, which showed headline inflation at 3.4% year-over-year in August, down from 3.7% prior to a revision. Wood said a new PCE approach might shave 0.2 to 0.4 points off core inflation readings.

Citi recently raised its 12-month Bitcoin target to $113,000, a move that reflects Wall Street's growing optimism about Bitcoin's prospects. However, Wood noted that the retail sentiment around Bitcoin on Stocktwits remained in the 'bearish' zone, while chatter dropped to 'low' from 'normal' levels over the past day.