Every time the crypto market enters a dramatic phase, the CEO of ARK Invest Cathie Wood is one of the first investors I turn to in order to understand the dynamics that are changing on the charts.
Wood is a veteran investor in the digital asset market. In fact, she claimed that ARK Invest was the first public asset manager to gain exposure to Bitcoin (BTC) in 2015.
Related: Bitcoin crashes below $80K again as investors panic
Bitcoin had not even reached the $500 price mark in 2015, but it was a significant increase since its launch in 2009. But Wood’s pro-crypto move was met with strong criticism.
However, the confidence seems to have paid off over the years as Bitcoin continued to reach new highs. ARK Invest estimates that the price of cryptocurrency will reach $1 million in 2030.
Wood also continues to buy shares of crypto companies such as:
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Coinbase (Nasdaq: COIN), the largest crypto exchange in the United States
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Robinhood Markets (Nasdaq: HOOD), an electronic trading platform with crypto and tokenized stock offerings
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Block (NYSE: SQ), Jack Dorsey’s Bitcoin technology company
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Bitmine Immersion Technologies (NYSE: BMNR), the largest Ethereum (ETH) treasury company in the world
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Bullish (NYSE: BLSH), the crypto exchange backed by Peter Thiel
Given Wood’s deep expertise in crypto investments, it’s worth understanding her perspective after Bitcoin’s crash below $80,000 on January 31.
Lorenzo Valente, Director of Research, Digital Assets at ARK Invest, recently shared an analysis comparing the gold market cap as a percentage of the US M2 money supply.
M2 is a broad measure of the US money supply (cash, checking, savings, money market funds).
According to the analysis, the gold market cap is 170% of the entire US money supply right now.
The figure is the highest level (ATH); in fact, it is as high as it was in 1934 during the Great Depression and only slightly above the figure in 1980 when inflation peaked, the chart showed.
Simply put, gold is worth as much as it can be. Such peaks usually occur during periods of economic stress and change in the dollar regime and often mark turning points, Valente said. For example, gold fell by 60% after 1980.
Even now, it feels like a “pivot moment” and while no one knows what will happen next, those who know can make huge profits, he added.
When ARK Invest shared its outlook for 2026 on January 15, the asset manager noted that the correlation between Bitcoin and gold prices was very low at 0.14 since the beginning of 2020.
This is exactly what Wood repeated in response to Valente’s post X. In simple terms, Bitcoin and gold do not usually move together on a daily or monthly basis.