Cathie Wood predicts deregulation and tax cuts boost Bitcoin as diversifier

Summary of Cathie Wood's 2026 Outlook

Cathie Wood suggests that US policy may recreate a risk-on regime similar to the early 1980s, potentially boosting Bitcoin as a portfolio diversifier.
The projection includes deregulation, tax cuts, sound monetary policy, and strong defense strategies, which could strengthen the dollar and cap gold prices.
Wood's "coiled spring" thesis argues that while GDP growth appears stable, the economy has faced rolling recessions in rate-sensitive areas, such as housing and manufacturing.
Existing home sales fell from 5.9 million in January 2021 to 3.5 million in October 2023, reflecting the recession impact.
Deregulation and lower taxes are expected to boost innovation, particularly in AI and digital assets, under leadership like David Sacks.
Corporate cash flows may benefit from accelerated depreciation, potentially reducing the effective corporate tax rate to ~10%.

Gold, Bitcoin, and Dollar Dynamics

Oil prices dropped significantly, with home sale prices also decreasing, indicating reduced inflation pressures.
Labor productivity data shows modest gains, while inflation measures suggest a potential easing of price pressures.
The gold price increased by 65% in 2025 as Bitcoin decreased by 6%, suggesting different market dynamics for each asset.
Bitcoin's supply growth is limited, enhancing its role as a diversification tool rather than just "digital gold."
The dollar might rise due to improved US returns on invested capital, echoing past periods of economic strength.

Implications for Investors

The focus shifts from specific price targets to positioning within a regime of falling inflation, lower rates, and increased AI investment.
Bitcoin's low correlation with other assets supports its use as a portfolio diversifier.
ARK previously projected potential 2030 scenarios for Bitcoin at $300,000 (bear), $710,000 (base), and $1.2 million (bull).

Current BTC trading price: $95,685.

Bitcoin price chart