Cathie Wood Sees Bitcoin Gaining Strength Against Gold

ARK Invest CEO Cathie Wood made a significant statement about Bitcoin's performance relative to gold in a recent interview. She noted that the long-term correlation between the two assets is quite low, citing studies by ARK since 2019 that show the correlation remaining at approximately 0.1. Wood pointed out that the correlation has recently turned negative, with gold falling as Bitcoin rises, and assessed this situation positively for Bitcoin, stating, 'We believe the turnaround for Bitcoin has occurred.'

Wood also discussed the impact of technological advancements on inflation, arguing that despite rising inflation concerns in the markets, these advancements could create strong disinflation, or even deflation in some areas, in the coming period. She noted that major technological transformations such as artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing could lower production costs, putting significant pressure on inflation.

Wood stated that if artificial intelligence and other innovative technologies accelerate productivity growth, economic growth could significantly exceed current expectations. She also pointed out that the recent rise in US bond yields was largely due to an increase in real interest rates, rather than inflation expectations, indicating that markets are beginning to price in higher real economic growth.