ARK Invest CEO Cathie Wood said she would shift from gold to Bitcoin (BTC) after the precious metal reached an all-time high on a key liquidity-adjusted measure, arguing the cryptocurrency's fixed supply and long-term adoption thesis outweigh its recent underperformance.
What Happened: Wood Calls Gold Overextended
Wood made the remarks during a Feb. 2 episode of The Rundown interview, where she addressed claims that Bitcoin has "lost its mojo" relative to gold. She pointed to a chart showing gold divided by the M2 money supply, which she said hit a record high this week.
"Gold is probably riding for a fall," Wood said. "The last two times it was anywhere near this was in the massive inflation in the '70s early '80s and the Great Depression."
She noted that Bitcoin and gold show virtually no correlation based on ARK's analysis. In previous market cycles, gold led before Bitcoin caught up.
Wood acknowledged stablecoins have absorbed some of Bitcoin's transaction narrative in emerging markets but characterized that as a payments-layer shift rather than a savings-layer replacement. "When they want real savings, they're going to buy Bitcoin, we believe," she said, referencing ARK's bull-case target of $1.5 million by 2030.
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Why It Matters: Supply Dynamics Favor Bitcoin
Wood's core argument rested on issuance rates. Bitcoin's supply growth stands at 0.8% annually and will drop to 0.4% in two years, she said, compared with gold's roughly 1% average supply growth.
She also attributed Bitcoin's recent struggles to an Oct. 10 "flash crash" caused by a software glitch at Binance that triggered an auto-deleveraging cascade. "People were margin called to the tune of about 28 billion dollars," Wood said, adding that the overhang is now clearing.
Because Bitcoin is "the most liquid of all crypto assets," it becomes "the first margin call" during deleveraging events. Wood said she expected the market to hold between $80,000 and $90,000 absent a major geopolitical shock, though her comments preceded Monday's slide to $74,600.
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