Ark Invest founder and CEO Cathie Wood has maintained a bullish stance on the U.S. economy, even amidst concerning economic data. On December 5, Wood addressed inflation, housing, and her perspective on Bitcoin's performance relative to gold. Wood is recognized as one of the most influential investors in technology and cryptocurrency, known for her early and significant investments in Bitcoin, Tesla, AI, and genomics. She established ARK Invest, a prominent U.S. investment firm specializing in high-growth innovation sectors, and her market analyses significantly influence Wall Street's perception of emerging technologies and digital assets.
Cathie Wood's Perspective on Inflation
Wood acknowledged that inflation "does seem to have been stuck in this two and a half to three percent range for a while now." In the U.S., the Consumer Price Index (CPI) reported a year-over-year increase near 3.0% in September 2025, slightly exceeding the Federal Reserve's 2% target. The Fed's preferred measure, the Personal Consumption Expenditures (PCE) gauge, also hovered around 2.6% to 2.8%.
Despite these figures, Wood argued that robust real economic growth and increased productivity, rather than further interest rate hikes, are the keys to reducing price pressures. She stated:
“Many people assume that growth means inflation. That's absolutely wrong. If you look at the 45 years with the exception of COVID, the 45 years since inflation peaked in the early 80s, when real growth has picked up, inflation comes down, mostly because of productivity gains.”
Her reasoning is that when economic expansion is driven by technological advancements, such as blockchain, AI, robotics, and automation, businesses can achieve higher production volumes at lower costs. This efficiency ultimately leads to reduced prices, thereby decreasing inflation.
Wood outlined this dynamic as follows:
- •When the economy grows due to technological innovation (blockchain, AI, robotics, automation, etc.).
- •Businesses can produce more with fewer costs.
- •This pushes prices down.
- •Meaning inflation falls, not rises.
Cathie Wood on Bitcoin's Potential to Outperform Gold
Amidst ongoing discussions between figures like Peter Schiff and Binance founder Changpeng Zhao regarding Bitcoin and gold, Cathie Wood shared her comparative analysis of the two assets.
Wood presented a chart illustrating gold's value relative to the money supply (M2). She observed that this ratio is currently at its highest point in history, with the exception of the Great Depression period. In contrast to the Great Depression, when the money supply was contracting and the dollar was devalued against gold, current money growth has turned positive.
She suggested that many investors holding gold are anticipating a delayed inflationary impact from the surge in liquidity experienced during the COVID-19 pandemic. However, historical trends indicate that gold prices can decline sharply once inflation concerns subside.
Cathie Wood drew a parallel between the current economic climate and the early 1980s, a period when gold experienced a significant downturn after reaching its peak. She recalled:
“In 1980 gold peaked at $850… and over the next five years… it dropped 67%. Why was that? It was because Reaganomics was working and investors decided to focus on the equity market and the bond market… The dollar became very strong. The dollar became better than gold.”
She further elaborated, stating: ". . . so yes, the gold price can go down. And we think we are moving into more than a Reaganomics market. We think this is Reaganomics on steroids, based on, especially on the tax cuts."
Reaganomics refers to the economic policies implemented by U.S. President Ronald Reagan in the 1980s, characterized by four main pillars: tax cuts, deregulation, tight monetary policy (initially), and increased defense spending.
“We would not be surprised to see something like that happen during the next four to five years,” Wood added.
She anticipates that Bitcoin will outperform gold as liquidity conditions improve and concerns about inflation shift towards potential deflationary pressures and productivity shocks.
Addressing the recent decline in Bitcoin's value, Wood conceded that the "drop in Bitcoin… was more severe than we expected," attributing it to "liquidity constraints and restraints" observed over the past few months. However, she concluded with an optimistic outlook:
“If we are right, we believe that the Bitcoin to gold ratio will resume its uptrend, especially if what I said when talking about the gold to M2 chart is correct.”
In essence, Wood's projection is that Bitcoin will achieve superior performance compared to gold in the long term.
Cathie Wood on Jobs and Federal Reserve Rate Cuts
Regarding economic policy, Wood noted that both fiscal and monetary measures are leaning towards easing. She suggested that "if this administration want the economy to be in really good shape by the time of the midterms, they really have to start providing the liquidity now."
She characterized the economic landscape of the past few years as a "three year rolling recession."
Wood identified the housing market, which she described as "very weak," as a potential "biggest surprise in the next year." She believes that declining interest rates and price reductions on new homes aimed at clearing high inventory levels will contribute to this improvement.
She estimated the probability of a Federal Reserve interest-rate cut on December 10 at "80–90%," indicating her expectation that the Fed will begin lowering rates in the near future.
Wood also highlighted that pro-crypto advocate Kevin Hassett is currently considered the "top probability" candidate to become the next Fed Chair.