ARK Invest CEO Cathie Wood Projects Big Upside For Bitcoin (BTC)

According to Cathie Wood the CEO of ARK Invest Bitcoin is likely to see significant upside as BTC’s on-chain metrics turn bullish.

Wood noted in a recent episode of ARK Invest’s ‘In the Know’ YouTube series, that on-chain metrics signal that Bitcoin is in the process of finding a bottom. 

“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.”

Aside from on-chain metrics, the investment strategist is also closely following the Bitcoin futures market, which she says is witnessing increased volatility for the leading crypto asset. 

“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.”

However, Wood points out that they have become more cautious after the Terra LUNA and UST collapse.

“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.”

Last month the crash of Terra’s algoritmic stablecoin UST and native token LUNA wiped out $40 billion in market capitalization.

At time of writing, BTC trades at $30,450, up 2.8% on the daily chart.