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Cathie Wood Suggests Bitcoin’s Traditional Cycle is Shifting Due to Institutions

Ark Invest CEO Cathie Wood indicates that Bitcoin's traditional four-year pattern may be disrupted as institutional investors increasingly hold more of the supply. This shift might stabilize price fluctuations and alter investment strategies.

Institutional Influence on the Market

  • Large firms and ETFs are accumulating coins, reducing their availability for retail trading.
  • The recent halving on April 20, 2024, decreased miner rewards to 3.125 BTC, reducing daily supply by about 450 BTC.
  • Ark Invest has increased its stakes in companies like Coinbase and Circle, indicating strong institutional demand.

Reevaluation of Bitcoin Cycles

  • Traditional cycles tied to halvings followed by significant crashes are being questioned.
  • Standard Chartered adjusted its 2025 price forecast from $200,000 to $100,000 due to ETF inflows.
  • Some analysts suggest future market corrections may be less severe, ranging from 25% to 40% declines.

Continued Role of Traditional Patterns

  • On-chain analytics show long-term holder behavior still reflects past cyclical patterns.
  • Halvings continue to impact trends, though broader economic factors now play a larger role.

Future Market Expectations

  • Investors should prepare for prolonged rallies with reduced volatility.
  • Cathie Wood notes decreasing volatility and suggests market lows may have been reached recently.
  • Macro strategist Lyn Alden predicts potential recovery to $100,000 by 2026, with possible uneven progress.