Cathie Wood declares era of 85% Bitcoin crashes over as analysts eye $34K floor
Key points:
- Cathie Wood maintains Bitcoin won't experience corrections exceeding 85% from its most recent all-time high.
- Fresh analysis predicts BTC price could bottom at $34,000 in the current cycle.
- Historical Bitcoin bear market trends suggest a potential reversal could occur during April.
Wood dismisses prospect of further 85% BTC price "collapses"
During her appearance on CNBC's Squawk Box program on April 1, Wood maintained a composed stance regarding the significant percentage losses in BTC price.
"Believe it or not, in the Bitcoin community, down 50% — if that's as far as it goes — they'll consider that a real victory," she said.
"Because you're right; the 85-95% collapses associated with a very new technology — that's done. This is a proven technology, it's a proven monetary system and it's a new asset class."
Wood, who has maintained a bullish position on Bitcoin for an extended period, delivered these remarks as Bitcoin hovered near its previous $69,000 all-time high established in 2021.
That peak was followed by an extended bear market lasting over a year during which BTC/USD declined almost 80% before reaching a low of $15,600. This represented the most recent major correction of this magnitude, as bear markets have historically delivered losses hovering around the 80% threshold.
Information from Glassnode, an onchain analytics platform, indicates that the present bear market has not yet replicated historical downward patterns, with the maximum decline from Bitcoin's $126,200 peak achieved in October 2025 currently standing at 52%.
In reaction to Wood's statements, market analyst Tony Severino issued a forecast suggesting 2026 would deliver a price floor representing a 72% correction.
"Correct, -72% max drawdown next =$34,000," he wrote on X.
This projection surpasses the widely-held expectations among traders regarding Bitcoin's next major cyclical bottom. According to Cointelegraph's reporting, the general consensus points toward a range spanning $40,000 to $50,000.
Earlier this week, however, Mike McGlone, a Bloomberg Intelligence analyst, issued a cautionary statement that price action may already be moving toward seven-year lows.
April historically represents Bitcoin rebound month
Furthering the bear-market analysis, information compiled by network economist Timothy Peterson indicated that April might represent a significant turning point for price action.
A chart shared on X this week demonstrates that April has traditionally served as a recovery period throughout bearish market phases.
The monthly close for March, in the meantime, brought an end to a five-month consecutive losing streak for BTC/USD, posting moderate gains totaling 1.8%.