Cathie Wood has brutal response to 50% Bitcoin crash

It has been nearly six months since the flash crypto crash on Oct. 10 last year that wiped out millions of dollars in a single day. Bitcoin (BTC) had hit the all-time high (ATH) of $126,080 only a few days earlier on Oct. 6, but currently, it is trading 47% lower at $66,600.67.

However, noted Bitcoin advocate Cathie Wood is still optimistic and asked investors to look at the bigger picture.

And the Bitcoin community simply cannot ignore her views. After all, she is a veteran investor in the digital assets industry.

Related: Cathie Wood sends blunt message after Bitcoin crashes

Wood once revealed that her fund, ARK Invest, was the first publicly listed asset manager to gain Bitcoin (BTC) exposure in 2015 when it wasn’t worth even $500.

Not only that, ARK regularly trades crypto-linked equities such as Coinbase (Nasdaq: COIN), Robinhood Markets (Nasdaq: HOOD), Block (NYSE: SQ), Circle Internet Group (NYSE: CRCL), Bitmine Immersion Technologies (NYSE: BMNR), and Bullish (NYSE: BLSH).

The asset manager keeps adding or shedding these holdings as per the ebbs and flows of the market.

In a recent interview with CNBC’s Squawk Box program, Wood talked at length about the ongoing Bitcoin crisis.

Though the crypto asset’s price has fallen 50% from its ATH, it’s considered a “real victory” within the Bitcoin community because this is far better than the 85%-95% crashes from its record high prices during the earlier years, she emphasized.

If we look at the price chart over the past years, Bitcoin’s recent price crash doesn’t seem as bad as previous drawdowns.

• November-December 2022: Bitcoin’s price fell 75% below ATH

• December 2018-March 2019: Bitcoin’s price fell 80% below ATH

• January-February 2015: Bitcoin’s price fell 85% below ATH

• October-December 2011: Bitcoin’s price fell 90% below ATH

Wood added that those shocking price collapses “associated with a very new technology” in those early years are a thing of the past.

“This (Bitcoin) is a proven technology. It’s a proven monetary system. And it’s a new asset class.”

Bitcoin is going through an institutionalization process right now and it’s an asset class that has very low correlation with other asset classes, Wood underlined.

It’s true. It has been more than two years since Wall Street giants such as BlackRock (NYSE: BLK) and Fidelity began offering spot Bitcoin exchange-traded funds (ETFs) to U.S. investors. Since then, Bitcoin has certainly come a long way.