Why Cathie Wood Sees Bitcoin’s 50% Plunge as a Win Amid Market Shifts

It's been about half a year since the sudden crypto crash on October 10 wiped out fortunes in a blink, leaving Bitcoin struggling, far from its recent peak. After hitting a record high of $126,080 on October 6, the digital asset has tumbled by approximately 47% to hover around $67,000.

Despite this downturn, Cathie Wood, a seasoned BTC proponent and CEO of ARK Investment Management, is advising investors to keep their eyes on the long game.

Wood, whose company was one of the pioneering publicly traded asset managers to dip its toes into Bitcoin back in 2015, has been actively involved in crypto-related stocks. Through ARK Invest, she's been trading shares of firms linked to the digital asset realm such as Coinbase, Robinhood Markets, Block, Circle Internet Group, Bitmine Immersion Technologies, and Bullish, adjusting their positions in response to market shifts.

During a chat on CNBC’s Squawk Box, Wood tackled the ongoing market dip, positioning Bitcoin's substantial drop as a symbol of growth rather than weakness.

She pointed out that a roughly 50% plunge from its peak signals a shift from the extreme volatility of previous cycles, where Bitcoin often faced nosedives of 85% to 95%.

Bitcoin's Rollercoaster Rides

While historical data backs the comparison to earlier cycles, the current slump hasn't yet matched the severity of past bear markets. In the 2021–2022 cycle, Bitcoin plummeted by nearly 80% from its then-record high of around $69,000, eventually bottoming out near $15,600.

Onchain data from Glassnode reveals that the current decline, measured against the October 2025 peak, has hit approximately 52% at its lowest point.

All this unfolds as Bitcoin's price erosion prompts a range of public companies and sovereign entities to unwind their BTC treasuries, a stark turnaround from the accumulation trend of recent years. Entities that championed long-term holding are now selling to manage liquidity, repay debts, and fuel strategic shifts.

Entities like Riot Platforms, Genius Group, Empery Digital, Nakamoto Holdings, and Marathon Digital have all trimmed their holdings, with some making significant reductions. Marathon alone shed over 15,000 BTC for $1.1 billion to ease debt, while Genius Group exited entirely. Riot has also been selling off bitcoin as it pivots towards AI and high-performance computing infrastructure.

Even those remaining committed to Bitcoin are downsizing reserves. Empery Digital sold a portion of its holdings to settle debts, while Nakamoto Holdings offloaded a fraction to support operations. Meanwhile, Bhutan has been scaling back its state-backed bitcoin reserves after amassing them through mining.

Despite the sell-off, public companies still collectively hold about 1.16 million BTC, representing over 5% of the total supply.

This article was originally posted on Bitcoin Magazine: Cathie Wood Calls Bitcoin’s 50% Crash a "Victory" as Market Tests New Floor.

Frequently Asked Questions

What are the pros & con's of a golden IRA?

An Individual Retirement Account (IRA), unlike regular savings accounts, doesn't require you to pay tax on interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. But, this type of investment comes with its own set of disadvantages.

For example, if you withdraw too much from your IRA once, you could lose all your accumulated funds. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. If you do withdraw funds, you'll need to pay a penalty.

Another problem is the cost of managing your IRA. Most banks charge 0.5% to 2.0% per annum. Other providers charge monthly management costs ranging from $10-50.

Insurance is necessary if you wish to keep your money safe from the banks. Insurance companies will usually require that you have at least $500,000. Some insurers may require you to have insurance that covers losses up $500,000.

If you choose to go with a gold IRA, you'll need to determine how much gold you want to use. Some providers limit the number of ounces of gold that you can own. Others allow you to pick your weight.

Also, you will need to decide if you want to buy physical gold futures contracts or physical gold. Physical gold is more expensive than gold futures contracts. Futures contracts provide flexibility for purchasing gold. They let you set up a contract that has a specific expiration.

You will also have to decide which type of insurance coverage is best for you. The standard policy does NOT include theft protection and loss due to fire or flood. It does offer coverage for natural disasters. If you live in a high-risk area, you may want to add additional coverage.

In addition to insurance, you'll need to consider the cost of storing your gold. Storage costs will not be covered by insurance. Safekeeping costs can be as high as $25-40 per month at most banks.

To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians are not allowed to sell your assets. Instead, they must hold them as long as you request.

Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. Your plan should include information about the investments you want to make, such as stocks, bonds, mutual funds, or real estate. Your monthly investment goal should be stated.

After filling out the forms, you'll need to send them to your chosen provider along with a check for a small deposit. The company will review your application and send you a confirmation letter.

When opening a gold IRA, you should consider using a financial planner. A financial planner can help you decide the type of IRA that is right for your needs. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.

What Does Gold Do as an Investment Option?

Supply and demand determine the gold price. It is also affected negatively by interest rates.

Due to the limited supply of gold, prices for gold are highly volatile. You must also store physical gold somewhere to avoid the risk of it becoming stale.

Is gold buying a good retirement option?

Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.

Physical bullion is the most popular method of investing in gold. There are many ways to invest your gold. The best thing to do is research all options thoroughly and then make an informed decision based on what you want from your investments.

If you don't want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. If you require cash flow, gold stocks can work well.

You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.

Is it possible to hold a gold ETF within a Roth IRA

This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).

An IRA traditional allows both employees and employers to contribute. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).

An ESOP provides tax advantages because employees share ownership of company stock and profits the business generates. The money invested in ESOPs is taxed at a lower rate that if it were owned directly by an employee.

You can also get an Individual Retirement Annuity, or IRA. An IRA allows for you to make regular income payments during your life. Contributions made to IRAs are not taxable.

How is gold taxed in an IRA?

The fair market value at the time of sale is what determines how much tax you pay on gold sales. If you buy gold, there are no taxes. It is not considered income. If you sell it later you will have a taxable profit if the price goes down.

Loans can be secured with gold. Lenders look for the highest return when you borrow against assets. This often means selling gold. This is not always possible. They may hold on to it. They might decide to sell it. You lose potential profits in either case.

So to avoid losing money, you should only lend against your gold if you plan to use it as collateral. It is better to leave it alone.

How to open a Precious Metal IRA

The first step in opening an Individual Retirement Account, (IRA), is to decide if it's something you want. To open the account, complete Form 8606. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form must be submitted within 60 days of the account opening. Once you have completed this form, it is possible to begin investing. You might also be able to contribute directly from the paycheck through payroll deduction.

You must complete Form 8903 if you choose a Roth IRA. The process for an ordinary IRA will not be affected.

To qualify for a precious-metals IRA, you'll need to meet some requirements. The IRS states that you must be at least 18 and have earned income. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. Additionally, you must make regular contributions. These rules are applicable whether you contribute through your employer or directly from the paychecks.

You can use a precious-metals IRA to purchase gold, silver and palladium. But, you'll only be able to purchase physical bullion. This means you won't be allowed to trade shares of stock or bonds.

You can also use your precious metals IRA to invest directly in companies that deal in precious metals. This option is available from some IRA providers.

However, investing in precious metals via an IRA has two serious drawbacks. First, they are not as liquid or as easy to sell as stocks and bonds. This makes it harder to sell them when needed. They don't yield dividends like bonds and stocks. Also, they don't generate dividends like stocks and bonds. You will eventually lose money rather than make it.

Statistics

The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
(Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)

External Links

How To

The best place to buy silver or gold online

Before you can buy gold, it is important to understand its workings. It is a precious metal that is very similar to platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It is difficult to use so people prefer to buy jewelry made from it to gold bars.

Today, there are two types available in gold coins: one is legal tender and the other is bullion. Legal tender coins are minted for circulation in a country and usually include denominations like $1, $5, $10, etc.

Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.

They aren’t exchangeable in any currency exchange. For example, if a person buys $100 worth of gold, he/she gets 100 grams of gold with a value of $100. For every dollar spent, the buyer gets 1 gram of Gold.

When you are looking to purchase gold, the next thing to know is where to get it. There are many options for buying gold directly from dealers. First off, you can go through your local coin shop. Another option is to go through a reputable site like eBay. Finally, you can look into purchasing gold through private sellers online.

Private sellers are individuals who offer to sell gold at retail or wholesale prices. Private sellers charge a 10% to 15% commission per transaction. Private sellers will typically get you less than a coin shop, eBay or other online retailers. This option can be a good choice for investing in gold because it allows you to control the price.

You can also invest in gold physical. You can store physical gold much more easily than you can with paper certificates. However, it still needs to be safe. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.

A bank or pawnshop can help you buy gold. A bank can offer you a loan for the amount that you need to buy gold. Small establishments that allow customers to borrow money for items they have brought are called pawnshops. Banks tend to charge higher interest rates, while pawnshops are typically lower.

Another way to purchase gold is to ask another person to do it. Selling gold can also be done easily. A company such as GoldMoney.com can help you set up a simple bank account and get paid immediately.

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By: Micah Zimmerman
Title: Why Cathie Wood Sees Bitcoin's 50% Plunge as a Win Amid Market Shifts
Sourced From: bitcoinmagazine.com/news/cathie-wood-calls-bitcoins-crash-victory
Published Date: Fri, 03 Apr 2026 16:14:33 +0000