Bitcoin’s on-chain measures are flashing optimistic signs, according to Cathie Wood, founder of ARK Invest.
Wood claims that on-chain indicators imply that Bitcoin is carving a bottom in a new edition of the hedge funds In the Know YouTube series.
“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 measurements, Wood says she’s keeping an eye on the Bitcoin futures market, which she claims is pointing to an increase in BTC volatility.
“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 confidence, Wood says the Terra (LUNA) crisis has caused them to be cautious.
“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.”