Cathie Wood, the founder and CIO of Ark Investment Management, believes that the next big bout of Bitcoin (CRYPTO: BTC) volatility will be favorable for holders of the digital asset.
What Happened: In a June 4 episode of Ark Invest’s In The Know YouTube series, Wood outlined the on-chain metrics that gives her reason to believe that a move upward is on the cards for Bitcoin.
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“It does appear, according to our metrics, that short-term holders have capitulated. That’s very good news in terms of putting in a bottom,” she said.
“Long-term holders are at an all-time high at 65.7%. That means they’ve been holding Bitcoin for at least a year.”
Futures have been trading at a discount to spot for over 6 months now. May was no different. This is the longest sustained period of negative funding rates in price history.
— Yassine Elmandjra (@yassineARK) June 3, 2022
Very bullish in our view (cc @dpuellARK ) pic.twitter.com/dp0pjyAGfL
The Ark Invest founder also highlighted that Bitcoin futures are currently selling at a discount to spot Bitcoin.
“During those times, we expect volatility. Now, we don’t know if it’s up or down, but you can see from other metrics in the piece that our thinking right now or our judgment call is the next big bout of volatility in Bitcoin will be to the upside.”
Wood also believes the Terra (CRYPTO: LUNA) disaster will result in more heavy-handed cryptocurrency regulations.
“I was surprised because algorithmic stablecoins don’t make any sense to me. I have a background in economics and I think you need the backing of something in order to have a stablecoin and this did not,” she said on the collapse of TerraUSD (CRYPTO: UST).
Price Action: According to data from Benzinga Pro, BTC was trading at $31,149, up 4.71% in the last 24 hours.