Cathy Wood: Bitcoin volatility is decreasing and institutional investment is accelerating, potentially breaking the traditional "four-year cycle".

ARK Invest CEO Cathy Wood highlights a significant shift in Bitcoin's market behavior and institutional adoption.

  • Bitcoin's price volatility has decreased substantially, from historical corrections of 75-90% to around 30%, indicating a potential weakening of its classic four-year boom-and-bust cycle.
  • Increased institutional investment is acting as a stabilizing force, limiting severe price declines and suggesting the market may have already found a temporary bottom.
  • While geopolitical risks are driving some investors toward traditional safe-havens like gold, Wood cautions that gold prices historically fell during major innovation cycles, a pattern that could repeat.
  • Wood views the current uncertainty and hype around Artificial Intelligence as a core investment opportunity, stating the AI era is just beginning.
  • The introduction of Bitcoin spot ETFs, such as ARK's ARKB, is seen as a beneficial long-term structure, facilitating easier access for both institutional and retail investors.
Summary

In an interview with FOX, Cathy Wood, CEO of ARK Invest, stated that while Bitcoin has experienced significant volatility recently, it has only fallen by about 20% over the past three months, and its behavior is returning to the "risk asset" trajectory. She pointed out that Bitcoin's early days often saw deep corrections of 75%–90%, while the current volatility has dropped to about 30%, suggesting that the classic "four-year cycle" may be weakening.

Wood emphasized that institutional investment in this new asset class will limit further price declines, and the market may have already reached a temporary low a few weeks ago. Meanwhile, the rise in gold reflects investors climbing a new "wall of worry," with geopolitical risks driving funds towards safe-haven assets. However, she cautioned that the innovation-driven gold rush of the 1980s and late 1990s was accompanied by a decline in gold prices, and a similar scenario could repeat itself.

Regarding the uncertainties and hype surrounding AI, Wood believes this is actually part of the investment opportunity, because "the AI era has only just begun." She added that as more funds enter through Bitcoin spot ETFs like ARKB, this structure will provide long-term benefits for both institutional and retail investors.

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Author: PA影音

This content is for informational purposes only and does not constitute investment advice.

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