Bitcoin may no longer experience the extreme 85% crashes seen in previous market cycles, according to Cathie Wood, who believes the digital asset is maturing as institutional adoption grows.
Wood, the CEO of ARK Invest, said that while Bitcoin remains volatile, the scale of its downturns is likely to reduce over time due to increasing participation from institutional investors and improved market structure.
Despite her long-term bullish outlook, Wood outlined a bear case scenario of around $34,000, suggesting that Bitcoin could still face downside pressure in adverse macroeconomic conditions. However, she emphasized that such declines would be significantly less severe than the historic crashes of earlier cycles.
Bitcoin has previously experienced multiple drawdowns exceeding 80–85%, but analysts now argue that the market’s evolution, including the rise of exchange-traded funds (ETFs) and broader institutional involvement, is helping stabilize price movements.
Wood maintained that Bitcoin continues to serve as a diversification tool for investors seeking higher returns relative to risk, highlighting its growing role in global portfolios.
Market experts note that while volatility remains a defining feature of crypto assets, the frequency and depth of major crashes could diminish as the market matures. However, short-term fluctuations are still expected amid macroeconomic uncertainty and shifting investor sentiment.
