Cathie Wood, CEO of ARK Invest, has revealed what will drive Bitcoin’s next rally, even as the leading cryptocurrency declines in this bear market. She noted that cryptocurrencies are currently experiencing a liquidity drought, but noted that the narrative of Bitcoin as a hedge against inflation remains unfettered, with artificial intelligence unable to replace it.
Cathie Wood reveals what will drive Bitcoin’s next rally
in Share XCathie Wood stated that capital outflows from less stable countries around the world will “light” another fire under Bitcoin and other digital assets. She also admitted that the AI wave is currently sucking liquidity out of the cryptocurrency market, which may explain the current bear market conditions.
“AI has sparked a technological revolution, and has deservedly sucked a lot of the oxygen out of the investment world, but it cannot serve as the wealth-protecting insurance policy that so many people in the world are now looking for,” ARK Invest CEO said.
Wood’s statement echoes what Rick Reeder, director of IT at BlackRock, said Bitcoin faces competition from technology stocks and emerging markets in the credit market. However, he declared that Bitcoin will eventually rise in the long term.
Meanwhile, it is worth noting that Cathie Wood and ARK Invest have predicted that Bitcoin will reach $1 million in value by 2030. They expect this to happen as Bitcoin gains greater institutional adoption and global acceptance as digital gold, with investors using it to preserve their wealth against inflation.
“Cryptocurrencies are stuck in the middle”
Lorenzo Valente, research director at ARK Invest, noted that cryptocurrencies fall in the middle. He explained that this asset class is not as stable as gold or growth stocks and is not as exciting as the IPO frenzy the market is about to witness or the DRAM Fund.
People forget the basics of encryption.
We are now in an institutional-led market, and cryptocurrencies are still viewed as a risky bet.
But the problem now is that there are assets that are riskier but carry a higher amount of upside. This makes BTC, ETH and SOL much lower… pic.twitter.com/j1ChI9Xf8m
– Lorenzo Valente (LorenzoARK) June 25, 2026
H claimed that there is a “massive” rotation of capital as institutions still view Bitcoin and other crypto assets as a risky bet, but not those with high upside, making them relatively less attractive. As such, these investors invest in riskier assets that offer higher upside. Notably, Bitcoin exchange-traded funds continued to see sustained outflows, which contributed to their decline Bitcoin price.
Valente was echoing the sentiments of Philippe Laffont, founder of Coatue Management, who said Bitcoin was in the middle of stablecoins and large IPOs. He noted that investors looking for stability will move to stablecoins, while those looking for greater risk are more likely to invest in these IPOs rather than Bitcoin.
