Cathie Wood: Bitcoin Has Extremely Low Correlation With Gold, Is Gradually Buying Into Crypto Concept Stocks

Cathie Wood, CEO of ARK Invest, highlighted Bitcoin’s minimal correlation with gold during an interview on February 8. She cited a correlation coefficient of 0.14 since 2019, indicating almost no relationship between the two assets. Wood also mentioned that gold tends to rally before Bitcoin, a pattern that could repeat in the current market. ARK has been gradually building small positions in crypto-related stocks, reflecting its cautious optimism about the sector.

Bitcoin has seen a sharp correction, losing nearly half its value from October’s high. As of February 8, it was trading near $70,000, raising concerns over liquidity and investor sentiment. The correlation with gold has historically diverged during periods of macroeconomic uncertainty. While gold often performs as a safe-haven asset, Bitcoin’s volatility has made it more sensitive to speculative trading and market dynamics.

ARK’s recent trading activity includes a $22 million sale of Coinbase shares across multiple ETFs. This move follows a brief purchase earlier in the week, signaling a recalibration of its crypto strategy. At the same time, ARK increased its stake in Bullish by buying 393,057 shares for $10.7 million. These moves suggest a shift in focus from one exchange to another amid market volatility .

Why Did This Happen?

Bitcoin’s recent volatility has been amplified by reduced liquidity and macroeconomic uncertainty. The average 1% market depth for Bitcoin has declined to around $5 million from over $8 million in late 2025. This means even small trades can cause larger price swings. Cathie Wood emphasized the need to enter positions in batches as negative sentiment reaches extreme levels. ARK’s strategy reflects a long-term view of the crypto sector, despite short-term fluctuations.

The broader crypto market has also seen outflows, particularly from spot ETFs. In one week alone, ETFs recorded a $544.9 million outflow, contributing to continued downward pressure on Bitcoin. This divergence in institutional demand has been more pronounced in 2026, with ETFs net sellers of 10,600 BTC compared to net buyers of 46,000 BTC in 2025.

How Did Markets React?

Bitcoin’s price action has drawn attention from both retail and institutional investors. The Fear & Greed Index reached an extreme fear level, indicating waning interest and heightened caution. Technical indicators like the RSI and MACD also show bearish momentum, with RSI at 21 and MACD below the neutral level.

ARK’s selling of Coinbase and buying of Bullish aligns with broader market trends. Coinbase stock closed at $165 on Friday, up 13%, but still down 26% year-to-date. Bullish, meanwhile, closed at $27, up 10%, but the stock remains down 27% in 2026. The firm reported a $563.6 million net loss in the fourth quarter of 2025.

Despite the challenges, some analysts believe the worst may already be over. James Butterfill of CoinShares noted that whale selling has started to slow, suggesting a potential bottoming process. Andrew Moss of Jefferies acknowledged the lack of bullish indicators but noted that Bitcoin’s recent bounce above $70,000 could indicate a stabilizing trend.

What Are Analysts Watching Next?

The upcoming earnings reports from crypto-related firms are drawing investor attention. Strategy (MSTR), which holds 713,502 BTC, is scheduled to release its Q4 results, which could provide insight into its corporate Bitcoin exposure. A similar report from Bullish outlines January 2026 trading volume and volatility metrics.

Bitcoin’s correlation with traditional assets is also under scrutiny. Deutsche Bank Research highlighted how BTC has increasingly decoupled from traditional market relationships, showing a lower correlation with equities and gold. This divergence challenges Bitcoin’s narrative as a digital gold alternative, especially as investors favor traditional safe-haven assets during geopolitical risks.

Investor behavior and liquidity trends are closely monitored. The shrinking liquidity in Bitcoin and other cryptos means small orders can cause larger price moves. Analysts are watching whether this trend continues and how regulatory developments or macroeconomic data might influence investor sentiment.

Market participants remain cautious as they assess the path of U.S. Federal Reserve policy and global economic developments. Thomas Probst of Kaiko noted that the liquidity contraction remains ongoing. This uncertainty creates a volatile environment for Bitcoin and other digital assets, with price swings expected to remain sharp in the near term.