The CEO of ARK Invest, Cathie Wood, has stated that Bitcoin is now a proven asset and it won’t face an 85% price correction from its new All-time High (ATH) during this bear market. She gave these comments during a recent Squawk Box interview with CNBC. The statement comes as several analysts have predicted an extreme bearish bias in this market, which could lead to price levels below $40k.
Bitcoin is currently trading around the $67k figure at press time, down 47% from its ATH of $126.5k. The cryptocurrency has largely held its value during the ongoing crisis in the Middle East, but there are growing fears that holders might capitulate further, with estimates of a potential bottom ranging from $30k to $56k.
Bitcoin is an Increasingly “Mature” Asset
Wood believed that Bitcoin has evolved from “very new tech” to “a proven technology, a proven monetary system, and a new asset class.” She emphasized growing “institutionalization” of Bitcoin, which has reduced its correlation with other assets and strengthened its price floor.
Because of the premier cryptocurrency’s growing maturity, she believes that big price drops from the previous bull season’s ATH are now a thing of the past.
“Because you’re right; the 85-95% collapses associated with a very new technology — that’s done. This is a proven technology, it’s a proven monetary system, and it’s a new asset class,” she said.
 
In the previous 2020-2022 cycle, Bitcoin posted an ATH of $69k but then dropped back to $15,600, a 76% decline. In the 2016-2018 cycle, the cryptocurrency reached a high of $20k but fell back to $3k within a year, a 90% decline. This year, the largest price decline we have witnessed was 52% when the crypto bounced back from the $60k level. The lower volatility across BTC’s successive price cycles indicates that the asset is indeed maturing over time.
Wood emphasized this part in the interview as well. “Believe it or not, in the Bitcoin community, down 50% — if that’s as far as it goes — they’ll consider that a real victory,” she said.
Where Will Bitcoin Bottom in this Cycle?
While Bitcoin bounced back convincingly from the $60k support level, analysts believe at least one major price squeeze remains before the cryptocurrency kicks off its long-term recovery. Analyst Willy Woo recently calculated that the premier digital asset will bottom anywhere between $46k and $54k in the coming months, while Ali Charts predicted it would find long-term support around $54k.
There have been predictions as low as $10,000 from skeptics like Peter Schiff, who has been calling the digital currency a scam since it was worth just $11.
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