Key Takeaways
- Cathie Wood predicts institutional adoption will reduce Bitcoin’s price volatility and limit severe drawdowns.
- Wood expects Bitcoin to outperform gold in the coming year as market dynamics shift.
ARK Invest CEO Cathie Wood believes Bitcoin is transitioning into a phase where institutional adoption may prevent severe price declines.
Speaking in an interview with ‘Mornings with Maria’ this morning, Wood said that Bitcoin’s role as a risk-on asset could disrupt its historical four-year cycle of boom and bust.
The ARK head noted that Bitcoin is behaving as a risk-on asset, though it has played a risk-off role during past crises, including the European sovereign debt crisis and the US regional bank crisis. She said there is fear around Bitcoin’s four-year cycle pattern, but institutional participation in the asset class is likely to prevent deeper declines.
Bitcoin has dropped 20% over the past three months, whereas gold has climbed close to 60% year-to-date. Wood predicts this trend could flip next year, with gold likely to retreat and Bitcoin poised for gains.
Bitcoin is trading at around $94,000, up 4% in the last 23 hours, according to CoinGecko. The market is awaiting tomorrow’s FOMC decision in anticipation of this year’s final rate cut.
Source: https://cryptobriefing.com/bitcoin-institutional-adoption-new-phase/
