ARK Invest anticipates future trends after Bitcoin's recent drop.

crypthub

about 11 hours ago

Bitcoin Fundamentals Remain Strong

ARK Invest's latest report asserts Bitcoin’s fundamentals are robust, citing network activity and profitability ratios. The analysis reveals a substantial demand base, supported by long-term investors demonstrating no immediate selling pressure. Data indicates bullish on-chain positions, with most Bitcoin held by investors with low spending habits and current profits.

Investor Activity and Supply Dynamics

Small and medium-sized investors are reportedly increasing Bitcoin purchases, while larger investors are moderating sales. Institutional interest is rapidly growing, with digital asset trusts and spot Bitcoin ETFs now holding roughly 12.2% of total supply. This trend highlights strengthening integration with traditional financial markets.

Macroeconomic Outlook and Potential Impact

ARK Invest believes controlled inflation and a weak labor market may prompt Federal Reserve policy adjustments. Government productivity targets could contribute to a "positive macro environment" for Bitcoin. These factors, coupled with policy changes, present opportunities for price appreciation, particularly by late 2025.