When Will Bitcoin's Down Cycle End? Cathie Wood Offers Her Timeline

Investors have been fixated on one question: how much longer will Bitcoin’s current correction persist? ARK Invest CEO Cathie Wood recently addressed this anxiety head-on, arguing that the world’s leading cryptocurrency is moving through one of its mildest market downturns on record. According to Wood, the phase many fear could extend for months is actually closer to completion than most realize.

Bitcoin’s Current Correction Is Historically Shallow

“We’re pretty well through the down cycle here,” Wood stated in a recent CNBC interview, dismissing widespread concerns about prolonged weakness. The key to understanding her confidence lies in the preceding bull run. Unlike previous cycles that saw explosive upward movements, Bitcoin’s most recent rally was muted by historical standards—and this actually limits how severe the pullback can be.

“We didn’t have much of an upcycle by bitcoin standards, so we think we’re pretty well through the down cycle here,” Wood explained. This observation is crucial: the shallowest gains naturally precede the shallowest losses. The mathematics of market cycles suggest that when the initial surge lacks intensity, the subsequent correction must also remain contained. Wood characterized the current drawdown as “the shallowest four-year cycle decline in bitcoin’s short history,” signaling that today’s downturn stands out as relatively mild compared to previous bear markets.

Support Levels Testing in the $80,000-$90,000 Zone

While Wood projects the worst is behind us, she acknowledged that Bitcoin could still probe key psychological price levels in the near term. The $80,000 to $90,000 range represents a critical testing zone for the market. “We may test in this $80,000 to $90,000 range on bitcoin, but we do think that the test will be successful,” Wood said, implying these levels should hold as support.

This distinction matters: a “successful test” means the price touches these levels and rebounds, rather than crashing through them. Wood’s framework suggests that even if Bitcoin dips into this range again, such dips would represent healthy consolidation rather than capitulation. The asset’s current trading position reflects this thesis—recent volatility has kept Bitcoin oscillating within precisely this band as markets digest geopolitical news and policy shifts.

Market Maturity Signals Long-Term Strength

Wood framed the present environment not as a crisis but as evidence of Bitcoin’s evolution into a mature asset class. According to her analysis, what outsiders perceive as weakness actually demonstrates market sophistication. The correction reflects natural cycle dynamics rather than fundamental deterioration.

Beyond the immediate price picture, Wood painted an expansive vision of Bitcoin’s role: “It is three revolutions in one.” She outlined Bitcoin as simultaneously representing a new global, rules-based monetary system competing with fiat currencies, a breakthrough technology platform, and the leading asset within an emerging asset class. This multi-faceted perspective anchors her conviction that temporary price cycles matter far less than the transformative potential unfolding over years and decades.

Recent Market Action Reflects Risk-On Sentiment

Bitcoin’s intraday price action today illustrated the current environment’s sensitivity to macro catalysts. The cryptocurrency swung from the $88,000 level in early trading to $90,500 at its peak, then retreated into the upper $87,000s before climbing back toward $90,000. The catalyst? President Trump announced a delay on planned tariffs following talks with NATO Secretary General Mark Rutte, describing the meeting as “productive” and establishing a preliminary framework for broader negotiations involving the Arctic region.

This news triggered a classic risk-asset recovery, with Bitcoin benefiting alongside equities as trade war anxieties eased temporarily. The February 1 tariff implementation was postponed, removing a near-term headwind. The episode underscores how macro policy developments now drive Bitcoin’s short-term movements, even as the longer-term cycle unfolding beneath these headlines continues progressing toward the resolution that Wood predicts.