Cathie Wood called Bitcoin's (BTC) roughly 50% decline from its October all-time high a sign of market maturation rather than weakness, arguing that the era of 85%-to-95% drawdowns is over for the largest cryptocurrency.
Wood's BTC Outlook
The ARK Investment Management chief executive appeared on CNBC's Squawk Box to address the current downturn. Bitcoin hit a record $126,080 on Oct. 6 before falling about 47% to roughly $67,000.
Wood framed the scale of the drop as progress. She said collapses of 85% or more are unlikely to return, calling Bitcoin a "proven technology" and a "new asset class."
Her firm was among the first publicly listed asset managers to gain BTC exposure back in 2015.
ARK Invest continues to actively trade shares of crypto-linked companies, including Coinbase, Robinhood Markets, Block, Circle Internet Group, Bitmine Immersion Technologies and Bullish.
Wood said that if losses hold near 50% of the peak value, the Bitcoin community would view the current correction as a "real victory."
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BTC Treasury Sell-Off
The price decline has forced a growing number of public companies and sovereign entities to unwind their BTC treasuries. Firms that once championed long-term holding are now selling to manage liquidity, repay debt and fund strategic pivots.
Marathon Digital sold over 15,000 BTC for $1.1 billion to cut debt. Genius Group fully exited its position.
Riot Platforms has been offloading Bitcoin as it shifts focus toward AI and high-performance computing infrastructure.
Empery Digital sold part of its holdings to repay loans, while Nakamoto Holdings liquidated a smaller portion to support operations. Bhutan has also been reducing its state-backed Bitcoin reserves after previously accumulating through mining.
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