Cathy Wood Predicts Bitcoin’s Transition From Four-Year Cycle to Explosive Growth

Cathy Wood predicts the end of Bitcoin’s four-year cycle, marking a shift to parabolic growth.

Bitcoin’s volatility is decreasing, attributed to rising institutional investments stabilizing the price.

Bitcoin’s price has risen by 4.53% in 24 hours, signaling strong market momentum, though it’s below its all-time high.

Cathy Wood, founder and CEO of Ark Invest, made a bold statement during a live interview on Fox, declaring that Bitcoin’s traditional four-year cycle is now “dead.” Wood’s comments come as Bitcoin continues its rise, diverging from historical patterns that saw its value fluctuate in four-year intervals. According to Wood, this new phase marks a shift in the digital asset’s behavior and its future trajectory.

Bitcoin’s Role as a “Risk-On” Asset

Wood pointed out that Bitcoin is showing more and more traits of a “risk-on” asset, which is a categorization that typically applies to high-risk investments only. Besides, she stated that the digital currency has served as a “risk-off” asset during the tough economic times, for instance, the European sovereign debt crisis and the recent regional banking crisis

However, Wood thinks that Bitcoin is entering a new phase where its role is determined by the influx of institutional investors into the market. Wood discussed how Bitcoin’s volatility used to be extreme, with drops of up to 90% in its early days. These fluctuations were part of the predictable four-year cycle that many traders had come to expect

However, she argues that the volatility has decreased, with Bitcoin only seeing a 30% decline in recent months. She attributes this transformation to the increasing power of institutional investors, whose participation is assisting in Bitcoin price stability and minimizing severe drops. In her opinion, this institutional investment is a decisive moment in the history of Bitcoin that might rule out the occurrence of further substantial falls.

Bitcoin Current Market Action Revealed

Cathie Wood’s remarks about Bitcoin comes at a time when Bitcoin bulls are now showing signs of dominating the market. Tracking the ongoing price trend at the time of writing this article, CoinMarketCap confirms that in the last 24 hours, Bitcoin’s price movement reported a notable increase from around $89,000 to $93,952.42. The price trend shows a steady ascent, culminating in a sharp peak at $93,952.42, noting a 4.53% uptick

Source: CoinMarketCap

Throughout the day, the market capitalization grew by 4.55%, mirroring the upward price action. The market capitalization rose by 4.55% during the day, thus mirroring the price increase. Likewise, the 24-hour trading volume also went up by 9.07%, which is an indicator of the growing market activity and the interest in it

The price path points to an active market action, as the price has been steadily going up with hardly any reversals during the time of tracking. While the price has gone up, it is still lower than Bitcoin’s all-time high of $126,198 reached on October 6. The price and market cap show consistent growth, together with the higher trading volume, all point to a situation of positive market sentiment and strong investor engagement.