Cathie Wood predicts next gold crash, sees Bitcoin outperforming

Core Viewpoint - Cathie Wood remains optimistic about the U.S. economy despite persistent inflation concerns, emphasizing that real growth and productivity improvements will help reduce price pressures rather than relying on interest rate hikes [1][2][3]. Inflation Insights - Wood acknowledges that inflation has been stable in the range of 2.5% to 3% for some time, with the U.S. headline CPI at approximately 3.0% year-over-year as of September 2025, slightly above the Federal Reserve's 2% target [2]. - The Fed's preferred PCE gauge is reported to be between 2.6% and 2.8% [2]. Economic Growth and Productivity - Wood argues that stronger real growth and productivity, particularly driven by technological advancements, will lead to lower inflation, countering the common belief that growth inherently leads to inflation [3][5]. - Historical data from the past 45 years indicates that when real growth increases, inflation tends to decrease, primarily due to productivity gains [3]. Comparison of Bitcoin and Gold - In the ongoing debate between Bitcoin and gold, Wood highlights that the current ratio of gold to the money supply (M2) is at historically high levels, comparable only to the Great Depression [4]. - She suggests that many gold investors are still anticipating inflation due to the liquidity surge from the COVID-19 pandemic, but historical trends indicate that gold prices can decline sharply once inflation fears subside [6].