ARK Invest CEO Cathie Wood suggests that Bitcoin's most severe crashes may be behind us as the cryptocurrency matures into a more established asset class. Wood notes that while 50% declines are still possible, they are now perceived differently compared to past cycles where drops of 85% to 95% were common. This shift reflects Bitcoin's evolving role as a financial asset and monetary system.
Recent data from Glassnode supports this view, showing that Bitcoin's current downturn, a 52% decline from its October 2025 peak of approximately $126,200, is less severe than historical norms. Analysts now predict a maximum correction of around 72%, potentially bottoming near $34,000. This is a significant change from previous cycles, suggesting a more stable market environment.
The transformation is attributed to the growing presence of long-term investors and institutional players, which is reducing volatility. As Bitcoin moves away from sharp boom-and-bust cycles, it may follow a path similar to gold and U.S. equities, characterized by slower, more sustained market movements.
Cathie Wood Predicts Milder Bitcoin Volatility Amid Market Maturity
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