Bitcoin's Correlation with Traditional Assets
According to ARK Invest's latest 2026 outlook report, Bitcoin is emerging as a key tool for investors aiming to build diversified portfolios, thanks to its low correlation with major asset classes such as gold, stocks, and bonds.
ARK analyzed weekly returns from January 2020 to early January 2026 and found that Bitcoin's correlation with gold is as low as 0.14, significantly below the 0.27 correlation between the S&P 500 and bonds. Bitcoin's correlation with bonds is the lowest at 0.06, while its correlation with the S&P 500 is 0.28, which is still much lower than correlations among traditional asset classes.
Supply Constraints Enhance Scarcity Value
Cathie Wood, CEO of ARK Invest, explained that Bitcoin's supply growth is strictly limited by its protocol. Over the next two years, the annual issuance rate of new Bitcoin is expected to be around 0.8%, slowing to approximately 0.4% annually thereafter. This mathematically fixed supply gives Bitcoin its inherent scarcity.
Wood emphasized that this predictable supply model, combined with rising demand, has driven Bitcoin's price surge of 360% since the end of 2022. As market recognition of Bitcoin's store-of-value properties continues to grow, its role in investment portfolios is expected to strengthen significantly.