$ARK Invest CEO Cathie Wood made noteworthy statements about Bitcoin on the latest “In The Know” program, where she discussed billionaire investor Bill Ackman’s warnings about inflation. Wood argued that despite rising inflation concerns in the markets, technological advancements could create strong disinflation, or even deflation in some areas, in the coming period, while noting a significant shift in Bitcoin’s performance relative to gold.
According to Wood, major technological transformations such as artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing could lower production costs, putting significant pressure on inflation. Therefore, the $ARK Invest CEO believes that, contrary to market expectations, inflation is more likely to decline rather than rise in the long term.
Wood also argued that the recent rise in US bond yields was largely due to an increase in real interest rates, rather than inflation expectations. According to Wood, this indicates that markets are beginning to price in higher real economic growth. Wood stated that if artificial intelligence and other innovative technologies accelerate productivity growth, economic growth could significantly exceed current expectations.
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On the Bitcoin side, Wood specifically drew attention to BTC beginning to gain strength against gold. While Bitcoin is often described as “digital gold,” Wood noted that the long-term correlation between the two assets is quite low, citing $ARK’s studies since 2019 which show the correlation between Bitcoin and gold remaining at approximately 0.1.
Wood noted that the correlation has recently turned negative, with gold falling as Bitcoin rises. The $ARK Invest CEO assessed this situation positively for Bitcoin, stating, “We believe the turnaround for Bitcoin has occurred.”
*This is not investment advice.