Cathie Wood, the CEO of Ark Invest, has made a noteworthy assertion regarding Bitcoin (BTC), claiming that the cryptocurrency has effectively reached its price bottom. In an appearance on CNBC”s “Halftime Report,” she highlighted that Bitcoin”s recent drawdown is largely complete, characterizing it as the shallowest decline observed in its four-year cycle history.
“We”re pretty well through the down cycle here. It will be the shallowest four-year cycle decline in Bitcoin”s short history, and then we”re off again,” Wood stated, showcasing her optimism regarding Bitcoin”s future performance.
Wood dismissed prevailing fears surrounding potential capitulation within the Bitcoin market, particularly in light of the upcoming halving cycle. She urged traders to adopt a bullish outlook, noting that Bitcoin is currently positioned with limited upside potential compared to its historical bull market standards. However, she did caution that the price of BTC might test support levels around $80,000 before a resurgence towards a new all-time high.
According to Wood, the anticipated bullish rebound for Bitcoin is tied to significant shifts within the global monetary system. She posits that Bitcoin is emerging as a frontrunner in a new asset class, particularly as institutional interest surges, driven by increasing regulatory clarity.
When considering the broader market context, Bitcoin”s price has recently lagged behind other major global assets, most notably Gold, amidst a rising money supply. Over the past year, Bitcoin has underperformed relative to Gold and Silver, but Wood anticipates a shift in this trend as we progress into 2026.
Moreover, a capital rotation appears to be underway, moving investments from precious metals, particularly Gold, into Bitcoin. This trend is evidenced by notable cash inflows into spot BTC exchange-traded funds (ETFs). In January alone, U.S. spot BTC ETFs recorded over $726 million in net cash inflow.
Wood”s insights provide a compelling perspective on the current state and future potential of Bitcoin, encouraging both institutional and retail investors to reassess their positions in light of these developments.
