Nearly six months after the dramatic flash crash in October that wiped out millions in a single day, Bitcoin continues to face significant challenges, trading substantially below its recent high. The cryptocurrency peaked at an all-time high of $126,080 on October 6 but has since plummeted approximately 47%, settling around $67,000.
Despite this downturn, Cathie Wood, a prominent advocate for Bitcoin and CEO of ARK Investment Management, is urging investors to adopt a long-term outlook. ARK Invest was one of the first publicly traded asset managers to invest in Bitcoin back in 2015 and has remained active in crypto-related equities. The firm is currently involved with several companies in the digital asset space, including Coinbase, Robinhood Markets, Block, Circle Internet Group, Bitmine Immersion Technologies, and Bullish, and has been adjusting its positions based on market conditions.
In an interview with CNBC’s Squawk Box, Wood framed the Bitcoin downturn as a sign of maturity rather than a failure of the asset. She noted that a drop of around 50% from its peak may actually represent a stabilization compared to previous volatility, where Bitcoin often saw declines of 85% to 95%. Wood emphasized that the extreme volatility of Bitcoin’s past may be behind it, suggesting that the cryptocurrency has evolved alongside broader institutional adoption.
Wood categorized Bitcoin as a “proven technology” and a “new asset class,” positing that its market behavior is changing for the better as participation increases. She expressed that if losses remain confined to about half of its peak value, this could be perceived as a “real victory” within the Bitcoin community.
Historical data provides context for these assertions. Although the current downturn has not yet reached the severity of past bear markets—such as the 2021-2022 cycle, where Bitcoin fell nearly 80% from its then-record high of approximately $69,000—the latest decline, according to on-chain data from Glassnode, has seen prices drop nearly 52% since the October 2025 high.
This price decline is impacting public companies and sovereign entities that are beginning to unwind their Bitcoin reserves, sharply reversing the accumulation trend seen over the previous two years. Firms that once embraced long-term holding strategies are now selling off assets to manage liquidity, reduce debt, and enable strategic shifts. For instance, Marathon Digital sold over 15,000 BTC for more than $1.1 billion to alleviate debt, while Genius Group completely exited its Bitcoin position. Riot Platforms is also offloading Bitcoin to focus on artificial intelligence and high-performance computing.
Even companies that are still committed to Bitcoin are beginning to scale back their holdings, with Empery Digital selling portions to pay off loans and Nakamoto Holdings liquidating a small fraction to facilitate operational support. Meanwhile, the government of Bhutan has also been scaling back its state-backed Bitcoin reserves after a period of accumulation through mining.
Despite these challenges, public companies collectively retain about 1.16 million BTC, which constitutes over 5% of the total Bitcoin supply. The current market landscape remains dynamic, with investors and companies alike navigating a new phase of Bitcoin’s evolving journey.
