Bitcoin is falling again and prominent bulls are making headlines. According to the team at ARK Invest, the pullback after the rally is part of a broader picture that combines gold, money supply measures, and investor flows. The market is in turmoil right now. But that doesn’t mean the long-term story is over.
Cathie Wood’s Longview
According to reports, Cathie Wood has been a steady public bet on cryptocurrencies for years, purchasing assets and shares in companies related to digital tokens when prices were much lower. Her company held early positions in exchange operators and fintech companies providing access to cryptocurrencies.
The report points to ARK’s valuation work and scenarios where Bitcoin could significantly outperform its current price by 2030 under certain adoption assumptions. These predictions are not promises. This model has many moving parts.
Also important to note is that since the beginning of 2020, the correlation between Bitcoin and gold prices has been 0.14, and the last two major bull runs in Bitcoin prices in the past two major cycles were led by gold prices. https://t.co/kxZEHhbBVJ
— Cathie Wood (@CathieDWood) January 31, 2026
Transactions of money and reputation
ARK’s head of research reportedly compared the market value of gold to the U.S. money supply, M2, and found that the measurement was at levels not seen since the 1930s and since the same period in 1980.
Such extreme events have historically preceded large reversals in the gold price. Some traders remember the 60% drop after its 1980 peak. These are facts worth revisiting. However, they do not directly translate into Bitcoin predictions.
Bitcoin and gold do not always move together. Historical correlations have been low, at around 0.14 since the beginning of 2020, according to the report. This number means that daily price movements are hardly synchronized.
However, in past major bull markets, gold’s rise was followed by Bitcoin’s strong performance. Now the sequence has stopped. Precious metals soared and then fell sharply, but capital did not flow into cryptocurrencies as some had expected. That begs the question of who is moving the money and why.
Market movements and what to watch next
At the time of this report, Bitcoin had fallen to $78,150. After the flash crash last October, the top crypto assets reached levels that are being watched closely by many traders. It is currently more than 35% below its peak on October 6, 2025, and is highly volatile.
Different roles, different watches: ARK’s take on Bitcoin and gold
Overall, ARK’s stance is consistent. According to the report, the company still views Bitcoin as a long-term asset tied to adoption and network growth, despite the sharp drawdown.
In contrast, gold is being watched closely for signs of depletion after its extreme rally on money supply concerns. In ARK’s view, the two assets play different roles, move on different clocks, and should not be judged solely on short-term price trends.
Featured image from Unsplash, chart from TradingView
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