Ark Invest CEO Cathie Wood has expressed confidence that the crypto market is nearing a major recovery. According to her, the liquidity squeeze that has weighed on digital asset prices is likely to reverse in the coming weeks, paving the way for renewed bullish momentum.
Cathie Wood Signals Crypto Market Recovery Within Weeks
During Ark Invest’s November webinar, Wood stated that crypto assets typically act as a leading indicator during periods of rising liquidity. She believes the market could fully rebound within the next month as financial conditions ease again.
Her outlook reinforces recent comments from BitMEX co-founder Arthur Hayes, who attributed the recent downturn to reduced USD liquidity. Hayes noted that conditions have already begun improving, especially as the U.S. Federal Reserve prepares to end quantitative tightening (QT) on December 1. He also highlighted increased lending activity among U.S. banks this month, another signal of growing liquidity.
Expectations for a December rate cut are also adding optimism. Current projections show an 85% probability that the Federal Reserve will lower interest rates by 25 basis points, creating a more supportive environment for risk assets such as crypto.
Bitcoin has already reflected this improved sentiment, reclaiming the $90,000 level. A third rate cut this year, as forecasted by JPMorgan, has further strengthened market confidence. Analysts like Raoul Pal also expect liquidity to expand significantly as the Fed ends QT and governments increase money printing, which weakens fiat currencies and amplifies the case for Bitcoin.
Cathie Wood Revisits Her Bitcoin Price Forecast
Wood also addressed her updated 2030 Bitcoin price target, which was revised from $1.5 million to $1.2 million. She explained that the explosive growth of stablecoins has reduced one of Bitcoin’s competitive advantages in emerging markets.
Stablecoins have rapidly developed into a multibillion-dollar sector, with issuers becoming major buyers of U.S. Treasuries. Wood described them as a “big force” in the financial system and believes the industry is only in its early stages of expansion.
Despite the adjustment to her long-term Bitcoin forecast, Ark Invest continues to increase its crypto exposure. The firm recently added $7.6 million worth of Coinbase (COIN) shares and expanded holdings in Block, Circle, Robinhood, and Bullish. Ark also reinforced its faith in Bitcoin by purchasing $2.8 million of its spot BTC ETF.
