Cathie Wood Predicts Capital Outflows Will Drive Bitcoin’s Next Rally, Says AI Can’t Replace BTC

ARK Invest’s CEO, Cathie Wood, has revealed what will drive the next Bitcoin rally, even as the leading crypto declines in this bear market. She noted that crypto is currently suffering a liquidity drought but signaled that BTC’s narrative as a hedge against inflation remains unfettered, with AI unable to replace it.

Cathie Wood Reveals What Will Drive The Next Bitcoin Rally

In an X post, Cathie Wood stated that capital outflows from less stable countries around the world will “light” another fire under Bitcoin and other digital assets. She also admitted that the AI wave is currently sucking liquidity out of the crypto market, which could explain the current bear market conditions.

“AI has launched a technology revolution, deservedly sucking a lot of oxygen out of the investment world, but it cannot serve as the insurance policy protecting wealth that many people in the world are seeking right now,” the ARK Invest CEO said.

Wood’s statement echoes that of BlackRock’s CIO Rick Rieder, who noted that Bitcoin is facing competition from tech stocks and emerging markets in the credit market. However, he declared that BTC will ultimately go higher in the long term.

Meanwhile, it is worth noting that Cathie Wood and ARK Invest have predicted Bitcoin could reach $1 million by 2030. They predict that this will happen as BTC gains greater institutional adoption and global acceptance as digital gold, with investors using it to preserve their wealth against inflation.

‘Crypto Is Stuck In The Middle’

ARK Invest’s Director of Research, Lorenzo Valente, remarked that crypto is in the middle. He explained that this asset class is not as stable as gold or growth equities and not as exciting as the IPO craze that the market is about to witness or the DRAM fund.

People are forgetting the basics of crypto.

We’re in an institutionally led market now, and crypto is still perceived as the risk-on bet.

But the problem is now that there are assets that are riskier but carry higher perceived upside. That makes BTC, ETH, and SOL far less… pic.twitter.com/j1ChI9Xf8m

— Lorenzo Valente (@LorenzoARK) June 25, 2026

H claimed that there is a “massive” rotation of capital as institutions still view Bitcoin and other crypto assets as the risk-on bet but not ones with higher perceived upside, which makes them relatively less attractive. As such, these investors are investing in riskier assets that offer higher perceived upside. Notably, Bitcoin ETFs have continued to see sustained outflows, contributing to the decline in the BTC price.

Valente was echoing the sentiments of Philippe Laffont, the founder of Coatue Management, who said that Bitcoin was in the middle of stablecoins and big IPOs. He noted that investors seeking stability will move to stablecoins, while those seeking greater risk will likely invest in these IPOs rather than BTC.