Cathie Wood Notes Bullish Moves In Gold Led Bitcoin Bounces In Last 2 Major Cycles, Calls These Cryptos 'Good Diversifiers'

Ark Invest founder Cathie Wood pitched cryptocurrencies as “diversifiers” in the current market on Saturday, pointing to historical data showing gold price rallies before Bitcoin’s (CRYPTO: BTC) bull run.

What Do Gold Trends Signal For Bitcoin?

In an X post, Wood noted Bitcoin’s low correlation with gold returns since early 2020, citing research from her firm.

She also highlighted that gold price movements preceded the last two “significant bull moves” in Bitcoin’s price.

Wood Says Cryptos Are ‘Good Diversifiers’

In response to inquiries about where to invest in the current market, Wood suggested Bitcoin, Ethereum (CRYPTO: ETH), and Solana (CRYPTO: SOL) as “good diversifiers.” Note that Ark Invest has been bullish on these assets, deeming them the “big three” in the cryptocurrency market.

The Counter-Argument

As indicated by the graph below, gold preceded Bitcoin’s bull market in the 2020-21 cycle and again in 2024-25. In the current market, the yellow metal rose to a record high of $5,590 before a sharp correction dragged it to $4,600.

Widely followed cryptocurrency analyst Benjamin Cowen, however, was not convinced.

He argued that parabolic rallies in precious metals typically lead to a drop in risk assets.

“You are looking at just the last decade, when you look at Gold in a more historical context [before BTC was created], there are numerous times where after parabolic rallies by metals, it immediately led to deep corrections in risk assets,” Cowen added, referencing data from the 1973 and 2008 crises.

Cowen also said that Bitcoin’s rally peaked in October and since then it has been in a bear market.

Price Action: At the time of writing, BTC was exchanging hands at $75,391.06, down 4.43% in the last 24 hours, according to data from Benzinga Pro.

Photo: Memory Stockphoto / Shutterstock