Cathie Wood sees further declines for gold, stating that ARK's innovation themes, such as blockchain and AI, could drive inflation far lower than anticipated.

  • Bitcoin has outperformed gold significantly since mid-August, with a gain of more than 30% versus a decline of almost 5% for gold.
  • ARK saw its long-term correlation at 0.1, which recently became negative, according to Cathie Wood.
  • Citi raised its 12-month Bitcoin target to $113,000 earlier this week. 

Bitcoin (BTC) has outpaced gold since August, and ARK Invest Chief Executive Officer (CEO) Cathie Wood said that the “turn is in” for the apex cryptocurrency against the metal. 

In the recent episode of In the Know published on Friday, Wood said, "We do think the turn is in here for Bitcoin." She called the move in the Bitcoin-to-gold ratio "a very nice turn," with Bitcoin going up and gold going down. 

Gold Slips As Bitcoin Climbs

Bitcoin has been running well ahead of gold since August 16. Bitcoin climbed to a gain of over 33% since then to date, in comparison, gold has been down over 4%. Since then, the two assets have gone different ways. 

Bitcoin has gained 33% while gold has fallen nearly 5% since mid-August. Source: Koyfin

Bitcoin's price traded over $85,200, up over 0.7% in the last 24 hours. On Stocktwits, the retail sentiment around Bitcoin remained in the ‘bearish’ zone, while chatter dropped to ‘low’ from ‘normal’ levels over the past day.

Bitcoin-Gold Correlation Turns Negative

Meanwhile, Wall Street took a more upbeat view of Bitcoin. Previously, Citi raised its 12-month Bitcoin target to $113,000, reversing two cuts it made earlier this year. The new target is still below Bitcoin's record of over $126,000 in October 2025. 

Bitcoin is often called digital gold. However, Wood explained that ARK's study, which goes back to 2019, found the correlation between the two at about 0.1. A reading of 1 would mean the two assets move in lockstep, while 0 means no link at all, which is why she called that “no correlation.” 

Wood said the correlation has recently turned negative, indicating that Bitcoin and gold have started moving in opposite directions. 

Wood Sees Gold Falling Further

Wood said gold peaked around the time President Donald Trump appointed Kevin Warsh as the Federal Reserve's Chair and had fallen since. "We would not be surprised to see it continue to decline," she said. She tied that view to a wider call on inflation.

Fed Chair Kevin Warsh is unlikely to miss the declining core inflation. She pointed to the latest Personal Consumption Expenditures (PCE) report, which showed headline inflation at 3.4% year-over-year in August, down from 3.7% prior to a revision. Wood said a private gauge, Trueflation, shows core inflation is still dropping. Her perspective comes from when the Fed hiked rates in September. 

A new PCE approach might shave 0.2 to 0.4 points off core inflation readings, said BitMine Immersion Technologies (BMNR) chairman Tom Lee. If it meant the Fed tightened too early, he said, it would be a bullish sign for crypto.

Read also: Michael Saylor Says Strategy's STRC Is Now Steadier Than The S&P 500's Biggest Tracker: ‘A Milestone For Digital Credit’

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