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

crypthub

about 8 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.