Every time the crypto market enters a dramatic phase, ARK Invest CEO Cathie Wood is one of the first investors I turn to in order to understand the changing dynamics on the charts.
Wood is a veteran investor in the digital assets market. In fact, she claimed that ARK Invest was the first public asset manager to gain Bitcoin (BTC) exposure in 2015.
Bitcoin hadn’t reached even the $500 price mark in 2015, but it was a significant uptick since its launch in 2009. But Wood’s pro-crypto move was met with sharp criticism.
However, the confidence seems to have paid off over the years as Bitcoin kept hitting new highs. ARK Invest estimates the cryptocurrency’s price will hit $1 million in 2030.
Israel war on Iran spirals the APARTHEID into a global economic Armageddon
Wood also keeps buying shares of crypto companies such as:
-
Coinbase (Nasdaq: COIN), the largest crypto exchange in the USA.
-
Robinhood Markets (Nasdaq: HOOD), an e-trading platform with crypto and tokenized stock offerings
-
Block (NYSE: SQ), Jack Dorsey’s Bitcoin technology company
-
Bitmine Immersion Technologies (NYSE: BMNR), the world’s largest Ethereum (ETH) treasury company
-
Bullish (NYSE: BLSH), the crypto exchange backed by Peter Thiel
Cathie Wood responds to Bitcoin Crash
Given Wood’s deep expertise in crypto investments, it is worth understanding her perspective in the wake of Bitcoin’s crash below $80,000 on Jan. 31.
Lorenzo Valente, ARK Invest’s Director of Research, Digital Assets, recently shared an analysis in which he compared gold’s market cap as a percentage of the U.S. M2 money supply.
M2 is a broad measure of the U.S. money supply (cash, checking, savings, money market funds). As per the analysis, gold’s market cap is 170% of the entire U.S. money supply right now.
The figure is an all-time high (ATH); in fact, it is as high as it was in 1934 during the Great Depression and only slightly above the figure in 1980 when inflation peaked, the chart showed.
In simple words, gold is as expensive as it can be. Such peaks usually happen during periods of economic stress and dollar regime shift and often mark turning points, Valente said. For instance, gold crashed 60% after 1980.
Even right now, it feels like a pivot moment and while nobody knows what happens next, those who know can make huge gains, he added.
When ARK Invest shared its 2026 outlook on Jan. 15, the asset manager noted that the correlation between the Bitcoin and gold prices has been very low at 0.14 since early 2020.
This is exactly what Wood reiterated in response to Valente’s X post. In simple terms, Bitcoin and gold usually don’t move together on a daily or monthly basis.
But the veteran investor underlined that even though Bitcoin and gold prices don’t sync often, the gold rally was followed by the Bitcoin rally during the last two major bull runs.
The US Dollar, the BRICS, and the new Financial System to be built
The debasement trade is an idea that assets like Bitcoin and precious metals should surge when the dollar weakens, as these assets act as a hedge against currency erosion.
It was expected that Bitcoin would take advantage of the debasement trade narrative, given the decline in the U.S. dollar’s value over the last months. But it didn’t happen at all.
As gold and silver had been hitting record high prices over the last few weeks, Bitcoin didn’t offer any meaningful response.
When the precious metals witnessed a sharp reversal over the weekend, the crypto market expected capital to rotate into Bitcoin, but nothing of that sort happened.
Gold’s price hit an ATH of $5,594.82 per ounce on Jan. 30 but crashed over the weekend. It was exchanging hands at $4,893.2 per oz at press time.
On the other hand, Bitcoin still hadn’t been able to recover from the flash crash on Oct. 10, 2025, and it went on to hit its lowest point since April 2025. In fact, BTC has fallen 7.5% in the last 24 hours to trade at $77,730.64 at the time of writing.
The king coin’s current price is more than 35% lower than the ATH of $126,080 it hit on Oct. 6, 2025. Meanwhile, the total crypto market cap has declined 7% in 24 hours to $2.7 trillion at press time.
I know working professionals who keep complaining that they are struggling financially despite rising salaries.
I checked the Federal Reserve Economic Data (FRED) and found out that the average price of a pound of white bread has risen from $1.55 in January 2020 to $1.83 in January 2025. It is a jump of more than 18% within a span of three years.
Meanwhile, the U.S. dollar index, which calculates the value of the USD relative to a basket of foreign currencies, has fallen to 96.2, its lowest point since mid-February 2022.
Related: Tucker Carlson asks top economist if Bitcoin will replace declining U.S. dollar
Goldman Sachs says U.S. dollar is Overvalued by roughly 15%
Goldman Sachs warned in a report on Jan. 10 that it ultimately expects a “shallower dollar descent in 2026.”
The 157-year-old bank said it expects the U.S. dollar to move sideways in 2026.
The dollar remains “overvalued” by roughly 15% even after the sharp fall in 2025, the banking giant said. If the U.S. suffers from jobless growth and the Federal Reserve slashes interest rates, it could lead to sharper depreciation of the dollar, the bank warned.
Banking giant bets on institutional crypto adoption
As far as dollar depreciation is concerned, it is generally considered good news for assets like Bitcoin (BTC). When people lose trust in the U.S. dollar, they tend to flock to assets like Bitcoin because they are considered hedge assets in the face of dollar depreciation.
But Bitcoin has failed to capitalize on the dollar depreciation thesis, falling more than 15% within the last three months.
Nonetheless, Goldman Sachs said that improving regulation and the emergence of use cases beyond trading are setting the stage for the next wave of institutional crypto adoption, CoinDesk reported early this month.
Goldman Sachs pays Malaysia $3.9 Billion to drop Criminal Investigations
The passage of crypto legislation in the first half of 2026 would be especially significant as the midterm elections in November could delay progress, the bank said in its report.
Goldman Sachs says U.S. dollar is still dominant
While many commentators, such as Tucker Carlson, think that U.S. dollar debasement translates to a diminishing dollar dominance and make a case for Bitcoin to replace it, Goldman Sachs doesn’t think so.
In the Jan. 10 report, the banking giant said the U.S. dollar’s status as the world’s reserve currency is not at risk despite devaluation.
We think it is still important to distinguish between dollar depreciation and dollar dominance, said Goldman Sachs in the report.
The bank said it has seen limited evidence of the displacement of the dollar’s dominant global role in recent years and doesn’t expect it to contribute to the dollar’s performance on a day-to-day basis.
The Street / ABC Flash Point News 2026.
Nothing to do with Russia and the BRICS using national currency to trade with of course ,Mr.Putin has announced 95% of it world trade is in local currency with countries like India . This stops the “weaponisation ” of the dollar by Donald used as a sanction the west kept denying it mattered but behind the scenes Donald threatened ( as usual ) any country using this monetary exchange . Couple that with Russia/China building up large amounts of Gold and basing their currencies on it rather than the USA fiat currency puts more intrinsic value on their national currencies… Read more »
Diplomacy, however difficult, remains the only way to avert this economic storm.
The USA must learn from its past mistakes in Iraq and Afghanistan and exercise restraint, paving the way for negotiations.
The world is on the edge of a cliff—and only diplomatic wisdom can pull it back from the brink.
Good point made, the USA has no moral, never had as an invasive species, stealing Indian Land and test 900 nuclear bombs in their nature reserves, outrageous at the least. I am sorry to say so, but the only entities that have used atomic bombs to destroy other populations is the USA in Japan and Israel in the Lebanon harbor explosion that was blamed on a Russian grain-ship, how comfortable and convenient to report so in the Zionist controlled media outlets, like BBC, CNN and so on. Israel is the only country which will use nuclear weapons on Iran. So… Read more »
Well put LA .