- Wood says rising institutional demand may end Bitcoin’s long-standing four-year market cycle.
- Bitcoin shows reduced volatility, falling only 30% instead of past deep drops near 90%.
- Market activity grows as Bitcoin trades near $94K while investors await the Fed decision.
Cathie Wood said on Fox Business that Bitcoin may no longer follow its old four-year cycle, as she believes new institutional demand is reshaping the market and reducing major price drops. Her comments came while Bitcoin continued to trade near $94,000 and market watchers waited for the coming Federal Reserve decision.
Wood Says Bitcoin’s Old Cycle May Be Ending
Cathie Wood, founder and CEO of Ark Invest said in her interview that Bitcoin used to move in a pattern marked by heavy rises and deep falls. She explained that early market drops reached as much as 90%, and traders expected this pattern to continue. She now believes that strong interest from institutions is changing that pattern and may stop deeper declines.
Wood stated, “We think the four-year cycle is going to be disrupted,” and she added that Bitcoin has only fallen about 30% in recent months. She said that this lower drop shows that the market is behaving very differently from the past. She also said that “we may have seen the law a couple of weeks ago.”
Moreover, Wood talked about Bitcoin acting as both a risk-on and risk-off asset at different times. She said it served a risk-off role in events like the European debt issue and the US regional bank crisis, yet it is now showing more risk-on traits as more investors enter the market.
Market Conditions and Institutional Influence
Bitcoin’s recent price move shows stronger market activity, as the price rose about 4% in the last day. CoinGecko data shows Bitcoin trading around $92,113, and the price has climbed from near $89,000 in the previous day. Trading volume also increased, which shows more activity across exchanges.
Market value grew at a similar pace and moved in line with the price gain. The steady price move occurred with few reversals during the day, and analysts are watching the next steps from the Federal Reserve as traders expect the final rate cut of the year.
Wood also compared Bitcoin with gold and said gold has moved up as a risk-off asset. She said past cycles show that gold can fall when innovation periods grow stronger, and she believes Bitcoin may rise next year while gold slows. Her comments came as Bitcoin approaches the next major policy update from the Federal Reserve.
