Cathie Wood: “Bitcoin weak after $28 billion in liquidations last year…selling pressure in the final stages”

A large-scale deleveraging was cited as the backdrop to the sharp drop in Bitcoin’s price. Cathie Wood, CEO of ARK Invest, said the recent decline in Bitcoin stems from roughly $28 billion in leveraged liquidations that occurred last year, and assessed that selling pressure has largely been alleviated at this point.

Speaking on Fox Business on the 26th (local time), Wood explained, “Bitcoin’s recent pullback is the result of a deleveraging event triggered by a Binance software glitch on October 10 last year.” She said that about $28 billion in leverage was removed from the market in the process.

On current market conditions, Wood said that “most of the selling pressure has already passed,” projecting that Bitcoin is likely to trade in a range between $80,000 and $90,000 for the time being. The assessment is that this corresponds to the final phase of the down cycle in the four-year cycle.

She added that after Bitcoin completes its adjustment, it will shift back into an uptrend, reaffirming her view that the existing bull cycle remains intact over the medium to long term.