Cathie Wood sends blunt message after Bitcoin crashes

Every clip the crypto marketplace enters a melodramatic phase, ARK Invest CEO Cathie Wood is 1 of the archetypal investors I crook to successful bid to recognize the changing dynamics connected the charts.

Wood is simply a seasoned capitalist successful the integer assets market. In fact, she claimed that ARK Invest was the archetypal nationalist plus manager to summation Bitcoin (BTC) vulnerability successful 2015.

Related: Bitcoin crashes beneath $80K again arsenic investors panic

Bitcoin hadn't reached adjacent the $500 terms people successful 2015, but it was a important uptick since its launch successful 2009. But Wood's pro-crypto determination was met with crisp criticism.

However, the assurance seems to person paid disconnected implicit the years arsenic Bitcoin kept hitting caller highs. ARK Invest estimates the cryptocurrency's terms volition deed $1 cardinal successful 2030.

Wood besides keeps buying shares of crypto companies specified as:

• Coinbase (Nasdaq: COIN), the largest crypto speech successful the U.S.

• Robinhood Markets (Nasdaq: HOOD), an e-trading level with crypto and tokenized banal offerings

• Block (NYSE: SQ), Jack Dorsey's Bitcoin exertion company

• Bitmine Immersion Technologies (NYSE: BMNR), the world's largest Ethereum (ETH) treasury company

• Bullish (NYSE: BLSH), the crypto speech backed by Peter Thiel

Given Wood's heavy expertise successful crypto investments, it is worthy knowing her position successful the aftermath of Bitcoin's clang beneath $80,000 connected Jan. 31.

Lorenzo Valente, ARK Invest's Director of Research, Digital Assets, precocious shared an analysis in which helium compared gold's market headdress arsenic a percent of the U.S. M2 wealth supply.

M2 is simply a wide measurement of the U.S. wealth proviso (cash, checking, savings, wealth marketplace funds).

As per the analysis, gold's marketplace headdress is 170% of the full U.S. wealth proviso close now.

The fig is an all-time precocious (ATH); successful fact, it is arsenic precocious arsenic it was successful 1934 during the Great Depression and lone somewhat above the fig successful 1980 erstwhile ostentation peaked, the illustration showed.

In elemental words, golden is arsenic costly arsenic it tin be. Such peaks usually hap during periods of economic stress and dollar authorities displacement and often people turning points, Valente said. For instance, golden crashed 60% aft 1980.

Even close now, it feels similar a "pivot moment" and portion cipher knows what happens next, those who cognize tin marque immense gains, helium added.

When ARK Invest shared its 2026 outlook connected Jan. 15, the plus manager noted that the correlation betwixt the Bitcoin and golden prices has been precise debased astatine 0.14 since aboriginal 2020.

This is precisely what Wood reiterated successful effect to Valente's X post. In elemental terms, Bitcoin and golden usually don't determination unneurotic connected a regular oregon monthly basis.