TLDR
- Cathie Wood links Bitcoin’s recent pullback to a $28 billion deleveraging event caused by a Binance software glitch.
- The October 10, 2025, “flash crash” had market effects, especially on Bitcoin due to its liquidity.
- ARK Invest believes the majority of the deleveraging event’s impact has passed, paving the way for Bitcoin’s recovery.
- Wood expects Bitcoin to consolidate between $80,000 and $90,000 before entering its next upward phase.
- Despite recent setbacks, ARK Invest remains confident in Bitcoin’s long-term growth potential and institutional support.
During an interview with Fox Business on 26th, ARK Invest CEO Cathie Wood explained that Bitcoin’s recent pullback resulted from a $28 billion deleveraging event. She attributed the event to a Binance software glitch on October 10, 2025, which had market repercussions. Wood noted that the selling pressure from this event has largely passed, and Bitcoin is expected to consolidate.
Binance Glitch Sparks $28 Billion Bitcoin Deleveraging
Wood addressed the market shock caused by a software glitch on Binance, leading to a $28 billion deleveraging. She referred to October 10, 2025, as a “flash crash” that hit the crypto space hard.
According to Wood, Bitcoin, being the most liquid crypto asset, was impacted the most. She mentioned that the selling pressure from this event has largely subsided, and the market is moving past it.
The ARK Invest CEO pointed out that Bitcoin was hit hardest during the unwind process. Wood emphasized that the nature of the crypto market makes Bitcoin more vulnerable to such events. Despite this, she believes the majority of the deleveraging is behind us, clearing the path for Bitcoin to regain stability.
ARK Invest’s Optimistic Bitcoin Forecast Amid Market Recovery
Wood expressed confidence in ARK Invest’s position in Bitcoin, with ARKB, the firm’s spot Bitcoin ETF, being a key part of their strategy. She stated that institutional investors are increasingly recognizing Bitcoin as the leader in a new asset class. While some are concerned about the “four-year cycle,” Wood believes the downside of this cycle has mostly passed.
She expects Bitcoin to stabilize between the $80,000 and $90,000 range before entering its next upward phase. Wood indicated that the current market conditions could pave the way for Bitcoin’s future growth. ARK Invest remains optimistic about Bitcoin’s potential despite recent setbacks.
