ARK Invest CEO Cathie Wood predicts Bitcoin's (CRYPTO: BTC) current four-year cycle drawdown to be the shallowest in its history, setting the stage for another leg higher.
Wood Expects Bitcoin To Be "Off Again"
Speaking on CNBC on Wednesday, Wood said ARK gains Bitcoin exposure primarily through its spot Bitcoin ETF, ARKB, rather than equity proxies such as Strategy (NASDAQ:MSTR).
She cited structural considerations and a preference for direct, "pure play" exposure to Bitcoin itself.
Addressing recent volatility, ARK attributed much of the weakness to an Oct. 10 flash crash linked to a software issue at Binance, which triggered widespread auto-deleveraging.
The event led to an estimated $28 billion in forced liquidations, creating residual market pressure.
The deleveraging cycle is largely complete and that Bitcoin is nearing the end of its current downturn.
While a retest of the $80,000–$90,000 range remains possible, the firm expects support to hold.
Wood said this cycle's decline should be the shallowest on record, positioning Bitcoin for renewed upside.
She described Bitcoin as "three revolutions in one": a rules-based global monetary system, a major technological innovation, and the leading asset of a new asset class.
Despite the "digital gold" label, ARK notes Bitcoin and gold show low correlation over a full market cycle.
Bitcoin As A Safe-Haven Asset
Responding to skepticism around Bitcoin's safe-haven role, ARK noted that Bitcoin has significantly outperformed gold since the 2022 equity bear market, behaving largely as a risk-on asset during the recovery.
With the launch of spot Bitcoin ETFs, Wood said institutional investors are still studying Bitcoin's behaviour and four-year cycle dynamics, which has slowed large-scale inflows.
Over time, ARK says Bitcoin can function as both a risk-on and risk-off asset — hedging inflation through its fixed supply and offering protection against deflation and financial stress due to its lack of counterparty risk and decentralized design.
ARK expects traditional asset management to evolve alongside decentralized finance and continues to favour direct exposure over leveraged or indirect Bitcoin vehicles.
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