Ark Invest's Cathie Wood Predicts Bitcoin Price Will Soar, Citing On-Chain Data

The CEO and founder of ARK Investment Management, Cathie Wood, says Bitcoin (BTC) will soon flip the bullish switch as on-chain metrics are once again showing signs of a potential upswing.

In the latest episode from a YouTube show called "In The Know," which premiers every Friday at 4:15 p.m. ET on the Ark Invest channel and features Ark's CEO & CIO, Wood said the on-chain metrics suggest the bottom for Bitcoin, the world's biggest cryptocurrency, might be in.

“It does appear, according to our metrics, that short-term holders have capitulated. That’s very good news in terms of putting in a bottom. Long-term holders are at an all-time high at 65.7%. That means they’ve been holding Bitcoin for at least a year. We’ve got some very strong holders, or HODLers, here. That’s also very good news, although we might see some long-term holder capitulation to mark the bottom,” Wood said in the episode.

Wood also said she has kept a close eye on the movement of the futures market, which she believes is showing signs of increased volatility in the short term.

“Bitcoin futures are selling at a discount to spot Bitcoin and during those times we expect volatility. Now, we don’t know if it’s up or down, but you can see from other metrics in the piece that our thinking right now or our judgment call is the next big bout of volatility in Bitcoin will be to the upside,” she said.

A huge contribution to the decreased flow of capital in the crypt market and Bitcoin's fall below $30,000 is the collapse of the LUNA-UST model. The Luna Foundation Guard (LFG) purchased a huge sum of BTC, which was sold to restore UST's peg.

Wood said that following the collapse of Terra, Ark Invest is taking extreme caution despite optimistic on-chain metrics.

“Nonetheless, we are on guard. You know, the Terra disaster, it was a fiasco for crypto, I think, in terms of raising or giving regulators even more incentive and reason to come in and regulate a little bit more with more of a heavy hand than we would anticipate,” Wood commented.

As of 9:47 p.m. ET, the price of 1 BTC was $30,570, which is nearly 55.5% lower than its all-time high of $69,000 reached Nov. 10, according to CoinMarketCap.

Interestingly, in January Ark Invest forecast that Bitcoin could be worth $1 million or more per unit by 2030, at the Big Ideas Summit.