Cathie Wood sees Bitcoin entering a new phase with less severe drawdowns
Cathie Wood predicts Bitcoin's institutional adoption will reduce volatility and potentially outperform gold as market dynamics shift.Summary
ARK Invest CEO Cathie Wood believes Bitcoin is entering a new phase characterized by decreasing volatility due to increasing institutional adoption. She suggests this could disrupt Bitcoin’s historical four-year boom and bust cycle, which previously saw price drops of 75-90%. While Bitcoin currently behaves as a risk-on asset, it has historically acted as a risk-off asset during crises. Wood anticipates that institutional participation will prevent the severe declines seen in the past and even predicts Bitcoin will outperform gold in the coming year, as gold's recent gains are linked to geopolitical risk and may reverse as innovation continues. Bitcoin is currently trading around $94,000, with the market awaiting the FOMC decision.
(Source：Crypto Briefing)