Cathie Wood says Bitcoin's (CRYPTO: BTC) recent weakness is temporary, arguing that the asset is still behaving like a classic risk-on investment while steadily "climbing a wall of worry."
What Happened: In an interview with Fox Business on Tuesday, Wood said she expects Bitcoin's traditional 4-year boom-bust cycle to become far less pronounced as institutional adoption deepens.
With major players now accumulating BTC through ETFs and corporate holdings, she says the extreme 75%–90% drawdowns seen in past bear markets are unlikely to repeat.
According to Wood, the most recent lows may already be behind us.
She contrasted this with gold's strong performance, calling it a typical risk-off reaction driven by geopolitical concerns. Wood expects gold to face pressure ahead, like its long decline during the innovation-driven boom of the 1980s and '90s.
Also Read: The Bitcoin, Ethereum Dump Is Over, Says Wintermute—Here’s What’s Next
Why It Matters: Wood emphasized that Ark Invest continues to grow its crypto exposure, increasing positions in Coinbase (NASDAQ:COIN), Circle (NASDAQ:CRCL), and the ArkB Bitcoin ETF.
Her view aligns with recent comments from Standard Chartered, which argued that surging ETF inflows have made Bitcoin's halving cycle increasingly irrelevant as a price catalyst.
While the bank trimmed its 2025 BTC target to $100,000, it still expects its longer-term thesis to hold by 2026.
Looking ahead, Wood remains bullish on both AI and Bitcoin.
She said Ark Invest will keep expanding its Bitcoin ETF holdings, noting that steady, passive inflows ultimately strengthen both investor returns and the firm's long-term strategy.
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