Cathie Wood Explains Bitcoin Deleveraging and Price Outlook

In a January 26, 2026 interview on Fox Business, Wood explained that a $28 billion deleveraging event triggered by a Binance software glitch on October 10 drove heavy selling pressure.

Wood emphasized that most of the forced selling is now behind the market and expects Bitcoin to stabilize in the $80,000 to $90,000 range before the four-year cycle’s downside concludes and the uptrend resumes.

Understanding the October Deleveraging Event

Deleveraging occurs when investors or trading platforms reduce their borrowed positions, often under stressful conditions. In October, the Binance glitch caused automated liquidation of leveraged Bitcoin positions, forcing a large volume of sales within a short period. This $28 billion in liquidations added extreme downward pressure to Bitcoin’s price, amplifying volatility beyond typical market fluctuations.

A real world example helps clarify the impact. Imagine a trader holding $1 million in Bitcoin with 3x leverage. A sudden technical issue triggering liquidations would force the platform to sell up to $3 million worth of Bitcoin to cover the position. Multiply this by thousands of similar accounts, and the result is a cascading market effect. Events like this demonstrate why technical stability and risk management are critical in crypto trading, especially on platforms that offer high leverage.

Wood expects Bitcoin to consolidate in the $80,000 to $90,000 range following the deleveraging. Consolidation refers to a period when the price moves within a relatively narrow range, allowing markets to absorb previous shocks and stabilize. Historically, Bitcoin often undergoes such phases after major market events, creating conditions for renewed growth.

More About Cathie Wood

Cathie Wood, CEO of ARK Invest, predicts that tokenization could grow into an $11 trillion market in the near future, signaling a major shift in how assets are created, traded, and managed. This transformation will rely on blockchain technology to provide faster, more transparent, and more efficient infrastructure for financial markets.

Platforms like Injective are positioning themselves at the forefront of this change, offering the tools and protocols to enable tokenized assets, decentralized trading, and interoperable financial systems. For investors and businesses, this represents a significant opportunity to participate in the next generation of digital finance.

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