Cathie Wood Says Institutions Are Buying Bitcoin While Weak Holders Exit the Market

Ark Investment CEO Cathie Wood says the recent Bitcoin market dip has opened up a bullish opportunity for institutional investors, as large investors are increasingly treating Bitcoin selloffs as accumulation phases rather than reasons to panic.  

On the flipside, the spot Bitcoin ETF is seeing six days of continuous outflow, taking $1.55 billion out of the crypto market. 

Institutions See BTC Drops as Buying Opportunity

Speaking during an interview with The Rollup, earlier Bitcoin investors who accumulated during previous market cycles are now gradually distributing their holdings.

However, she explained that the market structure is changing.

Instead of those coins moving into the hands of short-term retail traders, they are increasingly being absorbed by institutions and long-term ETF investors focused on multi-year exposure.

Wood said traditional asset managers often view sharp Bitcoin declines differently from retail traders.

“When traditional investors see Bitcoin fall 50%, they see opportunity, rather than a warning sign,” she said. 

Bitcoin Network Activity Is Cooling Down

At the same time, on-chain activity is also cooling. Crypto analyst Ali Martinez noted that active Bitcoin addresses dropped nearly 40% over the last two weeks, falling from around 821,000 to roughly 494,000. 

This decline in network activity usually happens when trading slows, and short-term speculation fades. That leaves a larger share of circulating supply in the hands of long-term holders with stronger conviction.

Despite this, short-term data show ongoing pressure. Spot Bitcoin ETFs have recorded six straight days of outflows, pulling about $1.55 billion out of the crypto market. 

As of now, Bitcoin is trading near $77,420, which is still below the estimated average cost basis of spot Bitcoin ETF investors, around $82,520. This means many ETF holders are still sitting at an unrealized loss despite the recent price recovery.

Ark Invest Predicts Bitcoin To Hit $750K to $1.25 Million

Despite the recent correction, ARK Invest remains highly bullish on Bitcoin’s long-term future. Wood said the biggest driver behind ARK’s bullish outlook is the growing institutional shift toward Bitcoin and digital assets as part of broader portfolio allocation strategies.

ARK Invest’s current base-case forecast places Bitcoin near $750,000 over the next five years.

Meanwhile, the firm’s bullish scenario projects Bitcoin could eventually reach $1.25 million as institutional adoption accelerates globally.