Low Correlation Presents Investment Opportunity
Cathie Wood, CEO of ARK Invest, recently commented that Bitcoin's price dropped to around $60,000, nearly halving from its October 2021 peak. She noted that since 2019, Bitcoin has shown a very low correlation with gold, with a coefficient of just 0.14, indicating virtually no relationship between the two.
Gold Could Signal Market Recovery
Wood added that historical data shows gold often rises before market recoveries, and this pattern might happen again. Although the market bottom is unpredictable, her team is strategically buying crypto-related stocks in stages.
Gradual Buying Amidst Extreme Sentiment
She further explained, 'We disclose our trades daily, and you can see we're steadily increasing positions in related equities. While we can't guarantee the downturn has ended, extreme pessimism often presents the perfect opportunity to invest incrementally.'