Cathie Wood, the founder and CEO of Ark Invest and a prominent supporter of Bitcoin, recently shared her insights on the cryptocurrency’s market behavior.
In an interview with Fox Business, a leading American news channel, Wood revealed that the traditional four-year cycle pattern associated with Bitcoin appears to have been disrupted.
She explained that in previous years, Bitcoin exhibited extreme volatility, often plunging by as much as 90% during correction phases. These sharp ups and downs were part of a predictable cycle repeating every four years.
However, this pattern seems to be changing. According to Wood, volatility has notably diminished over recent years. She attributes this shift to both reduced price swings and the influx of major institutional investors entering the market at scale.
“Bitcoin's past was marked by high volatility with declines between 75% and 90%. Recently though, we have only seen drops around 30%.”
“The feared four-year cyclical trend in Bitcoin appears to have been broken.”
Wood credits this evolution largely to growing institutional involvement which brings greater stability by dampening drastic price falls. She views this surge in demand from professional investors as a pivotal development that could shield Bitcoin from severe downturns going forward.
Additionally, she expressed confidence that Bitcoin reached its lowest point just weeks ago.
Please note: This commentary does not constitute financial advice.