#Cathie Wood claims the cryptocurrency market has likely bottomed $BTC
ARK Invest founder Cathie Wood has recently expressed multiple viewpoints suggesting that the cryptocurrency market has likely bottomed. She also mentioned that the long-standing four-year cycle of Bitcoin has been broken, and her judgment is mainly based on various factors such as market liquidity and institutional entry. The specific content is as follows:
1. Judging the clearing of selling pressure in conjunction with the “10/11 flash crash”: On December 14, she mentioned Bitcoin as the most liquid asset during the recent plunge termed the “10/11 flash crash.” Such highly liquid assets are often sold off first when the market is under pressure, dragging down other cryptocurrencies. However, the market has basically digested the negative information that triggered the sell-off, and the downward pressure has likely eased, indicating that the market may have bottomed.
2. The four-year cycle of Bitcoin has been broken due to institutional entry: In an interview with Fox Business, she pointed out that Bitcoin has historically had extremely high volatility, with pullbacks reaching 75%-90%, and has adhered to a four-year cycle. However, this cycle has been broken in recent years due to a large influx of institutional funds into the Bitcoin market, significantly reducing its price volatility. Institutional investment decisions are based on valuation models and long-term allocation logic, allowing them to enter and absorb selling pressure during price pullbacks, which solidifies a “safety cushion” for the market. This also leads her to believe that the lowest point of this cycle may have already occurred.
3. Firmly optimistic about Bitcoin's core position: She emphasized that Bitcoin is not just a speculative asset but also represents a new global monetary system and an independent asset class, making it the primary choice for institutions entering the cryptocurrency field. Continuous recognition and allocation by institutions will further stabilize Bitcoin's price, thereby laying a solid foundation for the entire cryptocurrency market. She also mentioned that Ethereum is a favored infrastructure blockchain among institutions, and Solana has a presence in consumer-facing applications, with both ecosystems continuously developing, which indirectly supports the cryptocurrency market.
Additionally, she revealed that ARK's funds often indirectly invest in the cryptocurrency field through publicly listed companies related to crypto, such as Coinbase and Robinhood. Currently, cryptocurrency-related assets account for about 12%-13% of their investment portfolio, which aligns with her judgment that the cryptocurrency market has bottomed.
