Cathie Wood: Bitcoin will become an effective portfolio diversification tool in the coming years.

PANews reported on January 16th that, according to Cryptobriefing, Cathie Wood, CEO of ARK Invest, stated in her 2026 outlook that Bitcoin, due to its low correlation with major asset classes such as gold, stocks, and bonds, is expected to offer asset allocators higher returns per unit of risk, becoming an effective portfolio diversification tool for years to come. ARK's analysis of weekly returns from January 2020 to early January 2026 shows that Bitcoin's correlation coefficient with gold is only 0.14, far lower than the 0.27 correlation coefficient between the S&P 500 and bonds. Bitcoin has the lowest correlation coefficient with bonds (0.06) and the highest with the S&P 500 (0.28), but still significantly lower than the correlations between traditional asset classes.

Wood argues that Bitcoin's protocol strictly limits its supply growth, with new issuance increasing at an annual rate of approximately 0.8% over the next two years, before slowing to around 0.4% annually. This mathematically fixed supply gives it inherent scarcity. She points out that the predictable supply pattern, coupled with increasing demand, has driven Bitcoin's 360% price increase since the end of 2022.