ARK Invest 'neutral to positive' on Bitcoin price as analysts await capitulation
Bitcoin (BTC) has a “neutral to positive” outlook despite staying below $20,000, according to ARK Investment Management.
In its latest "Bitcoin Monthly" report, the American asset management giant flagged signs that BTC price action is close to bottoming.
One of Bitcoin’s most vocal supporters, ARK and CEO, Cathie Wood, have stuck with BTC exposure as the market continues to fall from all-time highs.
The latest Bitcoin Monthly release confirms that conviction, with Wood, analysts and research associate David Puell suggesting that little ground remains to be covered before BTC/USD reverses.
“Down 70% from its all-time high, bitcoin is trading at or below some of its most important levels: its 200-week moving average, the general cost basis of the market (realized price), the cost bases of long-term (LTH) and short-term holders (STH), and its 2017 peak,” the report reads.
As such, most of the losses should have already come, if history is a guide. Among indicators yet to see absolute lows are the MVRV ratio — the ratio of realized cap and the cost basis of entities hodling for different lengths of time.
“Historically, global bottoms occur when the MVRV of short term holders exceeds the MVRV of long term holders,” ARK explained.
Generally, however, Wood in particular sees little cause for concern as Bitcoin markets weather a macro storm of significant historical proportions.
In the latest edition of ARK’s podcast, “In the Know,” released July 1, she described the firm’s attitude to BTC as “neutral to positive” overall.
“We’re waiting for a few more capitulation signals and, of course, time will tell on the systemic side here. We haven’t heard of another stress signal in the last few days, so that’s good as well,” Wood said.
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