Cathie Wood sends blunt message after Bitcoin crashes
Whenever the crypto market enters a dramatic phase, ARK Invest CEO Cathie Wood is one of the first investors I turn to to understand the changing dynamics on the charts.
Wood is an experienced investor in the digital asset market. In fact, he claimed that ARK Invest was the first public asset manager to venture into Bitcoin (BTC) in 2015.
Related: Bitcoin falls below $80K again as investors panic
Bitcoin didn’t even reach the $500 price point in 2015, but it has risen significantly since its launch in 2009. However, Wood’s pro-crypto move was met with harsh criticism.
However, that trust seems to have paid off over the years as Bitcoin continues to reach new highs. ARK Invest predicts that the price of the cryptocurrency will reach $1 million in 2030.
Wood also continues to buy shares of crypto companies such as:
-
Coinbase (Nasdaq: COIN), the largest US crypto exchange
-
Robinhood Markets (Nasdaq: HOOD), an e-commerce platform offering crypto and tokenized stocks
-
Block (NYSE: SQ), Jack Dorsey’s Bitcoin technology company
-
Bitmine Immersion Technologies (NYSE: BMNR), the world’s largest Ethereum (ETH) treasury company
-
Bull Market (NYSE: BLSH), the crypto exchange backed by Peter Thiel
Given Wood’s deep expertise in crypto investing, it’s worth understanding his perspective after Bitcoin crashed below $80,000 on January 31.
ARK Invest Digital Assets Research Director Lorenzo Valente recently shared an analysis here he compared the market value of gold as a percentage of the US M2 money supply.
M2 is a broad measure of the U.S. money supply (cash, checking, savings, money market funds).
According to the analysis, the market value of gold currently accounts for 170% of the US money supply.
This figure is the all-time high (ATH); In fact, the chart shows that this figure is as high as it was in 1934, during the Great Depression, and only slightly above the figure in 1980, when inflation was at its peak.
Simply put, gold is as expensive as it gets. Valente said such peaks usually occur during periods of economic stress and dollar regime change and often mark turning points. For example, gold fell 60 percent after 1980.
He added that even now this feels like a “watershed moment” and that although no one knows what will happen next, those who do can reap huge profits.
When ARK Invests shared In its 2026 outlook on January 15, the asset manager noted that the correlation between Bitcoin and gold prices has been at a very low level of 0.14 since the beginning of 2020.
This is exactly Wood’s repeated In response to Valente’s post X. Simply put, Bitcoin and gold generally do not move together on a daily or monthly basis.
