In a recent interview on December 15th, Cathie Wood outlined her three most favored crypto assets and their positioning:
Bitcoin: As a global monetary system and a major entry point for institutional funds into the crypto market;
Ethereum: Positioned as an infrastructure layer for institutions;
Solana: A public blockchain focused on consumer applications.
During the 1011 flash crash, Bitcoin, being the most liquid of all crypto assets, was typically the first to be sold off, dragging down other cryptocurrencies. Other cryptocurrencies experienced even larger declines. With the relevant information now digested, the market may have bottomed out. The market is now focused on whether large traditional financial institutions (such as Morgan Stanley, Bank of America, Wells Fargo, and UBS) will formally introduce Bitcoin into ETFs during this cycle; this decision could become a crucial variable influencing the next phase of market movements.
