ARK Invest founder Cathie Wood is predicting a big upswing for Bitcoin as BTC’s on-chain metrics flash bullish signals.
In a new episode of the hedge fund’s In the Know YouTube series, Wood says that on-chain metrics suggest that Bitcoin is in the process of carving 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.”
In addition to on-chain metrics, Wood says she’s also keeping a close watch on the Bitcoin futures market, which she notes is hinting at a period of increased volatility for BTC.
“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.”
Despite the optimism, Wood says that they are taking caution following the Terra (LUNA) meltdown.
“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, Terra and its affiliated stablecoin Terra USD (UST) collaped, wiping out $40 billion in market capitalization.
At time of writing, Bitcoin is changing hands at $29,718.
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/SergZSV.ZP/wacomka