Katherine Wood predicts an imminent bullish trend in bitcoin

The founder of ARK Invest, Katherine Wood, believes that the totality of indicators in the bitcoin market indicates an imminent bullish trend, but investors need to be especially careful after the collapse of Terra.

Cathie Wood on In the Know Podcast statedthat bitcoin is now in the process of hitting a bottom. According to her, short-term holders capitulated, but several strong investors remained in the market:

“The share of long-term holders is at a record high of 65.7%. This means that they hold bitcoins for at least a year. While we are seeing some long-term holders capitulate, there are some very strong investors in cryptocurrencies and this is a positive signal for bitcoin.”

Wood added that in addition to the indicators inside the blockchain, the company is closely monitoring the bitcoin futures market, which, according to her, hints at a period of increased volatility.

“Bitcoin futures are selling at a discount, which indicates high volatility. We do not know whether the price of bitcoin will go up or down according to this indicator, but this can be seen in other indicators. And we can argue that the next big spike in bitcoin volatility will be directed upwards,” the expert explained.

The founder of ARK Invest noted that, despite the optimism, caution should be exercised after the collapse of the Terra project.

“We are on the alert after the disaster with Terra. I think it was a fiasco for the entire crypto industry, as regulators got even more incentive to regulate the industry much more tightly than we expected,” she said.

An analyst from the South Korean agency CryptoQuant agrees with Katherine Wood, who believes that long-term investors, having not reached their goal and become disillusioned with bitcoin, are selling cryptocurrency, and this is a positive signal for BTC.