On February 8, ARK Invest CEO Cathie Wood emphasized the importance of introducing new assets with low correlation to existing ones for achieving diversified asset allocation. According to BlockBeats, Wood noted that Bitcoin fits this criterion, suggesting that the inclusion of low-correlation assets can enhance risk-adjusted returns over the long term.
Wood believes that institutions are taking cryptocurrencies seriously, despite previous hesitations due to the concept of a 'four-year cycle.' Regardless of whether such a cycle exists, the market has experienced a significant downturn and is nearing what many technical analysts consider a potential bottom.
As the market approaches this bottom, it often exhibits significant volatility. In hindsight, people often wish they had bought at the low point, as the V-shaped rebound becomes evident. While this is not a guarantee, Wood observed that various factors seem to be aligning.