In a recent interview, Cathie Wood, CEO of ARK Invest, expressed her belief that Bitcoin is approaching the conclusion of its current downturn. During the discussion, she suggested that this latest four-year decline is likely to be the most minimal in the cryptocurrency”s historical performance.
Wood emphasized that the recent bull market for Bitcoin was relatively subdued compared to previous cycles, which she argues has lessened the depth of the current pullback. “We”re pretty well through the down cycle here,” she stated, countering widespread concerns about a prolonged correction for Bitcoin.
Despite the optimism, Wood acknowledged the possibility of Bitcoin testing significant psychological price levels in the short term, with expectations of trading within the $80,000 to $90,000 range. However, she remains confident that these levels will hold firm. “We may test in this $80,000 to $90,000 range on Bitcoin, but we do think that the test will be successful,” she remarked.
According to Wood, the current market dynamics reflect a maturing asset rather than indicating inherent weaknesses. She characterized the ongoing drawdown as “the shallowest four-year cycle decline in Bitcoin”s short history,” forecasting renewed upward movement once the correction concludes. “And then we”re off again,” she added optimistically.
Wood articulated a broader vision for Bitcoin, framing its long-term narrative as encompassing three revolutionary aspects: the emergence of a new global monetary framework designed to compete with traditional fiat currencies, advancements in technology, and the establishment of Bitcoin as a leading asset within a new asset class. “It is a technology revolution,” Wood asserted, “and it is the leader of a new asset class.”
In recent trading activity, Bitcoin exhibited notable volatility, fluctuating several thousand dollars as market participants reacted to geopolitical developments, particularly announcements from U.S. President Donald Trump. The price surged from the $88,000 area in the early hours to reach $90,500, later retracting to the upper $87,000s before rebounding toward the $90,000 mark after Trump indicated a delay in planned tariffs.
In a post on Truth Social, Trump elaborated that this decision stemmed from a “very productive meeting” with NATO Secretary General Mark Rutte, where they discussed a preliminary framework for a broader deal involving Greenland and the Arctic region. Trump”s announcement regarding the postponement of tariffs, initially set to take effect on February 1, alleviated short-term trade worries, contributing to a rebound in risk assets such as Bitcoin.
