Bitcoin (CRYPTO: BTC) fell 6% in 2025 while gold surged 65%, but ARK Invest CEO Cathie Wood says Bitcoin wins in 2026 because gold just hit valuations only seen once in 125 years—during the Great Depression.
Why Gold Hit Extreme Levels
Gold, as measured by the (NYSE:GLD) rallied 166% from $1,600 to $4,300 since October 2022, driven by global wealth creation growing faster than gold’s supply.
Wood said gold’s price relative to the money supply has only been this expensive once in the past 125 years—during the Great Depression.
That ratio just surpassed its previous peak from 1980 when inflation and interest rates were in double digits, meaning gold is more expensive now than during the worst inflation crisis in modern history.
Here’s the kicker: after gold hit extreme valuations in 1934 and 1980, stocks crushed it for the next two decades. Equities returned 670% over 35 years and 1,015% over 21 years respectively.
Wood’s warning is simple—gold looks expensive at current levels while equities look positioned for a major run.
Wood’s Case For Bitcoin In 2026
Bitcoin gained 360% since October 2022 while its supply only grew ~1.3% annually—and unlike gold, you can’t mine more Bitcoin when prices surge.
Gold miners respond to high prices by digging up more gold. Bitcoin’s supply is locked by code—it will grow just 0.82% per year for the next two years, then drop to 0.41% annually.
That scarcity advantage matters when demand increases.
Wood said Bitcoin doesn’t move with stocks, bonds, or gold, making it a true diversification tool. When one asset crashes, Bitcoin often moves independently—giving portfolios protection other assets can’t provide.
Moreover, Bitcoin moves less in sync with gold than the S&P 500 moves with bonds, meaning it’s a better hedge for portfolios.
“Bitcoin should be a good source of diversification for asset allocators looking for higher returns per unit of risk during the years ahead,” Wood wrote.
Gold Technical Levels
Gold is down 0.70% after touching fresh all-time highs above $4,660 earlier this week.
The 20 EMA at $4,470 has acted as dynamic support throughout this rally, with the Supertrend at $4,366 providing a safety net below.
Key levels
- Support: $4,470 (20 EMA), then $4,366 (Supertrend). Breaking $4,300 threatens the entire rally.
- Resistance: $4,660 previous high, then $4,700-$4,800. Breaking $4,800 opens psychological $5,000.
Bitcoin Technical Levels
Bitcoin is down 0.88%, stuck in a frustrating $88,000-$97,000 range for two weeks inside a symmetrical triangle pattern.
Price sits below the 100 EMA at $95,963 and 200 EMA at $99,502, unable to reclaim higher ground despite multiple attempts.
The triangle must resolve soon—each rally to $97,000 gets rejected, each dip to $92,000 gets bought.
Key levels
- Support: $92,050 (20/50 EMA cluster), then $91,024 (SAR). Breaking $88,000 risks cascade to $84,000-$85,000.
- Resistance: $95,963 (100 EMA), then $99,502 (200 EMA). Clearing $100,000 opens $103,000-$105,000.
Image: Shutterstock
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