Bitcoin’s outlook is more optimistic as institutions continue to adopt digital assets. ARK Invest CEO Cathie Wood remains optimistic, reaffirming the company’s ambitious $1.5 million price forecast for Bitcoin.
Speaking in a video, Wood stated:
The odds have gone up that our bull case will be the right number because of what is becoming the institutionalization of this new asset class.
Wood pointed to a growing trend of institutional investors incorporating Bitcoin into their portfolios. She highlighted its distinct return and risk profile compared to traditional assets. According to ARK’s “Big Ideas 2025” report, Bitcoin could achieve this target by 2030, potentially boosting market confidence.
Amid optimism, market dynamics reflect mixed signals. A tweet from Alphractal revealed that Bitcoin is going through a deleveraging process. Data from 17 large exchanges reflects a massive decrease in open positions. Historically, such trends either lead to price declines or long sideways trends.
The Open Interest to Market Cap ratio has also risen sharply since 2024, signaling increased risk. The market recently saw a wave of liquidations, reflecting a “liquidity reset.” Analysts suggest lower ratios reduce the chances of forced liquidations, especially for dominant long positions.
Bitcoin dominance eyes key resistance levels
Analyst Rekt Capital shared his opinion on Bitcoin dominance, suggesting it may revisit the 71% resistance. As per historical data, Bitcoin dominance has reached this level on three occasions, without exception.
However, dominance bottoms have been making higher lows, indicating modifications in market structure. The subsequent bottom is anticipated at 41.5-42.5%.
As BTC’s price moves in a volatile range, institutional interest and market deleveraging themes shape its outlook. With institutional backing and strategic repositioning on the cards, the target of $1.5 million appears increasingly probable.
