BREAKING,” “End of an Era,” “New Era,” “Matures,” “Institutional Shift

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Cathie Wood Says <a href="https://usdinrusd.com/btc-usd/">Bitcoin</a> Has Outgrown Its Legendary Four-Year Cycle

Rather than repeating the typical four-year cycle that crypto analysts have focused on for the past ten years, Wood believes the asset is now acting in a new way.

Key Takeaways

  • Cathie Wood says Bitcoin’s historic four-year boom-and-bust pattern is fading.
  • She argues institutional ownership has reduced extreme volatility.
  • Wood believes Bitcoin already found its recent bottom and is stabilizing into a more mature asset class. 

Unlike past market drops which usually involved significant price crashes, the recent downturn didn’t fall as far as expected. It stopped well before reaching the levels seen in previous cycles.

She points out that Bitcoin’s price drops used to resemble those of a new, risky company, but now they behave more like adjustments in a major, established asset.

What Changed? The Investor Base, She Says

Wood attributes the shift to who is holding Bitcoin.

Large investors like wealth managers, companies, hedge funds, and government funds are increasingly buying up available assets and using more advanced methods to manage their risks.

This suggests there will be fewer people rushing to sell in a panic, fewer forced sales due to liquidations, and a more stable price level. She believes that major investors becoming more involved will make the huge price crashes seen in the past less likely.

Cycle Theory No Longer Explains Price Moves

For a long time, experts have tried to predict Bitcoin’s price changes by looking at past events like ‘halving’ dates and the cost of electricity. However, according to Wood, these methods may no longer be reliable because they assume that price movements are still primarily driven by individual investors, which isn’t necessarily the case anymore.

She believes the pattern of prices dropping in half didn’t vanish, but it no longer reliably indicates how much further they will decline.

Her Bottom-Line View: The Low Is Probably In

According to Wood, Bitcoin likely hit its lowest point several weeks ago, suggesting that the next price increase will be built on a stronger base than we’ve seen in recent years.

If her analysis is correct, Bitcoin’s tendency for huge price swings might be lessening as it develops into a more stable, long-term store of value, rather than just a risky investment.

This article is for informational purposes only and shouldn’t be considered financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Before making any investment choices, be sure to do your own research and talk to a qualified financial advisor.

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2025-12-11 07:27