This Analyst Thinks Bitcoin’s 50% Crash Was A ‘Victory’

Bitcoin has been facing pressure in the market for the past six months, following a flash crash on Oct. 10 that wiped out millions of dollars in a single day. The asset hit an all-time high of $126,080 on Oct. 6 but has since dropped by approximately 47% to around $67,000.

Despite this downturn, Cathie Wood, the CEO of ARK Investment Management and a long-time advocate for Bitcoin, is encouraging investors to take a long-term perspective. Wood’s firm was one of the first publicly listed asset managers to invest in Bitcoin back in 2015 and has continued to be actively involved in crypto-related equities. ARK Invest trades shares of companies linked to the digital asset sector, such as Coinbase, Robinhood Markets, Block, Circle Internet Group, Bitmine Immersion Technologies, and Bullish, adjusting their positions based on market conditions.

In a recent interview on CNBC’s Squawk Box, Wood addressed the current market downturn and viewed BTC’s decline as a sign of maturity rather than weakness. She pointed out that a 50% drop from peak levels signifies a shift from the extreme volatility seen in previous cycles when Bitcoin experienced drawdowns of up to 85% to 95%.

Wood believes that such severe collapses are unlikely to happen again, describing Bitcoin as a “proven technology” and a “new asset class.” She emphasized that the market behavior of Bitcoin has evolved alongside increased adoption and institutional participation. According to her, the current correction would be seen as a significant achievement within the Bitcoin community if losses are limited to around half of its peak value.

Looking at historical data, the current downturn has not yet reached the severity of earlier bear markets. During the 2021-2022 cycle, Bitcoin dropped by nearly 80% from its then-all-time high of around $69,000, reaching a low near $15,600. Recent data from Glassnode shows that the present decline, measured against the October 2025 peak, has dropped by approximately 52% at its lowest point.

As Bitcoin’s price decline continues, more public companies and sovereign entities are liquidating their BTC treasuries. This marks a stark reversal from the accumulation trend of the past two years, with firms now selling to manage liquidity, repay debt, and fund strategic initiatives. Companies like Riot Platforms, Genius Group, Empery Digital, Nakamoto Holdings, and Marathon Digital have all reduced their holdings, with some selling significant amounts of BTC. Even companies still committed to Bitcoin are trimming their reserves, with some selling to repay loans or support operations.

Despite the sell-off, public companies collectively hold around 1.16 million BTC, representing over 5% of the total supply. This ongoing trend highlights the evolving landscape of Bitcoin as it navigates through market fluctuations and investor sentiment.