A super bull cycle? As the price of Bitcoin seems to have found support above $90,000, speculation is rife about what comes next. In this still uncertain context, Cathie Wood, the founder of ARK Invest funds, stated that the historical four-year cycle of BTC could be questioned by the massive influx of institutional investors.
Key points of this article:
According to Cathie Wood, the massive entry of institutional investors could challenge Bitcoin's historical four-year cycle.
The leader of ARK Invest sees Bitcoin behaving more like a 'risk-on' asset currently.
The 4-year cycle of Bitcoin: a thing of the past?
Historically, Bitcoin has followed four-year cycles marked by very pronounced bullish and bearish phases. These cycles were mainly driven by the halving process, an event that halves the block reward for miners, thus regularly decreasing the supply of new BTC.
However, according to Cathie Wood, this cycle could well be coming to an end. In a recent interview with Fox Business, the CEO of ARK Invest stated that the massive entry of institutions into the crypto market could 'disrupt' this cycle.
'The volatility [of Bitcoin] is decreasing. (âŠ) We believe that institutional interest in this new asset class will prevent a more significant decline. (âŠ) We may have already reached the bottom a few weeks ago.'
Cathie Wood, founder and CEO of ARK Invest
For Cathie Wood, BTC is mostly part of the 'risk-on' assets.
At the same time, Cathie Wood also discussed the nature of Bitcoin as an asset. According to her, the cryptocurrency has been behaving more recently like a 'risk-on' asset. That is to say, like stocks, for example, an asset whose performance is linked to that of the global economy.
However, the leader acknowledges that Bitcoin has also 'played a risk-off asset role during certain crises', such as during the banking crisis around Silicon Valley Bank in the United States in March 2023. But it is primarily gold that remains the ultimate safe haven asset for Cathie Wood.
So, is the 4-year cycle based on the BTC network halving definitely a thing of the past? In any case, this view is shared by other market players. Recently, the fund manager Grayscale also predicted the end of Bitcoin's four-year cycle, especially with the arrival of crypto ETFs since 2024 and the growing demand for BTC from companies with a Digital Asset Treasury (DAT) strategy.
