Bitcoin 85% Collapse Era Is Now Over, Cathie Wood Says

As Bitcoin (BTC) holds the crucial $65,000 to $66,000 area, Ark Invest CEO and CIO Cathie Wood has discussed the flagship crypto’s current downturn, affirming that the era of severe pullbacks is over.

50% Bitcoin Correction Could Be A ‘Real Victory’

In a recent interview on CNBC’s Squawk Box, Ark Invest CEO Cathie Wood affirmed that Bitcoin has matured over the last few years, citing broader adoption and growing institutional demand for the flagship crypto.

Wood said that Bitcoin is a “proven technology” and a “proven monetary system,” adding that the industry is “seeing now is the institutionalization of this new asset class that has had a very low correlation with other asset classes.” Therefore, “the 85%, 95% collapses associated with a very new technology, that’s done.”

To the CEO, the ongoing market correction, which has reduced Bitcoin’s value by nearly half from its October peak, could be viewed as a “real victory” rather than a sign of weakness for the Bitcoin community, as it would mark a significant decline from its historical crashes during previous bear markets.

Last year, Wood trimmed her Bitcoin prediction for 2030 from $1.5 million to $1.2 million. However, she has reiterated her view that Bitcoin will serve as a store of value and global settlement system.

She previously asserted that growing institutional adoption will be a powerful driver for long-term value for the flagship crypto, adding that it has only begun. “Institutions really have just dipped their toes into this space. We have just started, so we have a long way to go,” she stated.

Analysts Say BTC Bottom Is Much Lower

Despite Wood’s outlook, other market analysts have forecasted much lower targets for BTC’s bottom. Recently, Bloomberg senior strategist Mike McGlone suggested that a “bursting crypto bubble” scenario is looming for the leading cryptocurrency.

As reported by NewsBTC, McGlone affirmed that Bitcoin could drop as low as $10,000 this year, noting that this level was a common trading price before 2020-2021 and “the first-born crypto’s most traded price since 2017.”

Market watcher Crypto Jelle recently pointed out that the cryptocurrency’s bear market lows have historically formed below the Fibonacci 0.618 retracement levels, which could place BTC’s bottom below the $57,000 area.

Meanwhile, analyst Ali Martinez said that BTC’s final correction before the next bull run could send the price 40%-50% down toward the $30,000-$40,000 area, based on its historical performance.

The analyst explained that the crossover between BTC’s 50 and 200 Simple Moving Averages (SMAs) has historically signaled the bottom of every major cycle over the past twelve years.