Why Cathie Wood Believes Bitcoin's Steepest Correction Phase May Be Complete

Bitcoin’s latest pullback is showing signs of exhaustion, according to ARK Invest CEO Cathie Wood, who argued in a recent CNBC interview that the world’s largest cryptocurrency is approaching the end of its current correction cycle. With BTC trading at $88.02K and up 1.85% over the past 24 hours, Wood’s assessment comes at a critical juncture for the asset class.

Wood made a compelling case that the ongoing drawdown will likely rank as the mildest in Bitcoin’s history when measured against previous four-year cycles. She pointed out that the recent bull market was notably restrained compared to historical patterns, which has naturally limited the severity of the current pullback. “We didn’t have much of an upcycle by Bitcoin standards, so we think we’re pretty well through the down cycle here,” Wood explained during the interview.

The Four-Year Cycle Reality Check

The psychological narrative surrounding Bitcoin’s four-year cycles has generated significant anxiety among investors, yet Wood dismissed these concerns with data-driven reasoning. She acknowledged that the asset could revisit the $80,000-$90,000 range as a technical test, but expressed confidence that these critical support levels would ultimately hold. According to Wood’s analysis, such retests—if they occur—would validate the cycle bottom rather than signal further weakness.

“We may test in this $80,000 to $90,000 range on Bitcoin, but we do think that the test will be successful,” Wood said, framing potential price retreats as healthy market consolidation rather than structural breakdown.

Market Volatility and Political Headwinds

Bitcoin experienced substantial intraday volatility following geopolitical developments, with the price swinging between the upper $87,000s and $90,500 as markets digested statements from U.S. President Donald Trump. Trump’s announcement that planned tariffs would be delayed—following a “productive meeting” with NATO Secretary General Mark Rutte—eased immediate trade concerns and helped risk assets recover ground.

The tariff delay, originally scheduled for February 1, removed a near-term headwind that had weighed on market sentiment. This policy shift underscored how macroeconomic catalysts can influence Bitcoin’s near-term price discovery while broader structural factors remain intact.

Bitcoin as an Evolving Asset Class

Cathie Wood framed Bitcoin’s long-term investment thesis in expansive terms, describing it as embodying “three revolutions in one.” She highlighted Bitcoin’s potential as a new global, rules-based monetary system competing with traditional fiat currencies, its role as a breakthrough technology, and its position as the leading asset in an emerging asset class. This multi-layered value proposition, according to Wood, extends far beyond short-term price cycles and supports sustained upside once the current correction fully normalizes.

“And then we’re off again,” Wood concluded, signaling ARK’s confidence in renewed momentum following the completion of this correction phase.