Bitcoin is down again, and famous bulls are talking. According to the ARK Invest team, the sharp rally followed by a pullback is part of a broader picture mixing gold, money supply actions and investor flows. The market is confusing right now. That doesn’t mean the long-term story is dead.
Cathie Wood’s Long-Term Perspective
According to reports, Cathie Wood has maintained an open and consistent bet on cryptocurrencies for years, purchasing assets and shares of companies tied to digital tokens when prices were much lower. Her company has taken initial positions in exchange operators and fintech companies providing access to cryptocurrencies.
The report mentions ARK’s valuation work and scenarios that would put Bitcoin well above its current price by 2030, subject to certain adoption assumptions. Such predictions are not promises. This model has many moving parts.
Also important to note is that the correlation between Bitcoin and gold prices has been 0.14 since the beginning of 2020, with gold prices driving the last two significant bullish moves in Bitcoin price over the past two major cycles. https://t.co/kxZEHhbBVJ
— Cathie Wood (@CathieDWood) January 31, 2026
Gold and its depreciation trade
According to the report, ARK’s research director compared the market value of gold to the U.S. M2 money supply and found levels not seen since the 1930s and eras such as 1980.
These types of extreme events have historically preceded major reversals in the price of gold. Some traders remember the 60% decline since the peak in 1980. This is a fact worth looking at again. However, this does not directly translate into predictions for Bitcoin.
Bitcoin and gold do not always move together. The historical correlation has been low since early 2020, at around 0.14, according to the report. This figure means that daily price movements are rarely synchronized.
However, in past major rallies, gold’s gains were followed by Bitcoin’s strength. This time the sequence froze. Precious metals soared and then fell sharply, but capital did not flow into cryptocurrencies as some expected. This raises questions about who moves the money and why.
Market moves and what to watch next
At the time this report was written, Bitcoin had fallen to $78,150. The top cryptocurrency asset has reached levels that many traders are watching closely following the flash crash last October. It is currently down more than 35% from its October 6, 2025 high and is highly volatile.
Different Roles, Different Watches: ARK’s View on Bitcoin and Gold
Overall, ARK’s position remains consistent. According to the report, the company still sees Bitcoin as a long-term asset linked to adoption and network growth, despite its sharp decline.
In contrast, gold is showing signs of depletion after a sharp rally fueled by concerns about the money supply. In ARK’s view, the two assets play different roles, move according to different clocks, and should not be judged solely on short-term price movements.
Featured image from Unsplash, chart from TradingView
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