ARK Invest, led by Cathie Wood, argued in its latest “Bitcoin Quarterly Report” that Bitcoin’s (BTC) fundamentals remain strong.
According to the report, network activity, profitability ratios, and supply distribution reveal that the market has a deep demand base and no selling pressure is seen by long-term investors.
Data shows that Bitcoin’s on-chain positions remain bullish. Most of the coin is held by investors with low spending tendencies and current profits. This creates a strong backdrop for price appreciation, particularly in the fourth quarter of 2025. Small and medium-sized investors are reportedly increasing their buying, while large investors are slowing down their selling.
The report also reveals rapidly growing institutional investor interest. Digital asset trusts and spot Bitcoin ETFs now account for approximately 12.2% of total supply. This suggests that Bitcoin’s integration with traditional financial markets is strengthening, creating a stable demand for strategic asset allocation.
From a macroeconomic perspective, controlled inflation and a weak labor market are paving the way for policy changes from the Fed. These policies, combined with the government’s productivity-focused growth targets, could create a “positive macro environment” for Bitcoin, according to ARK Invest.
*This is not investment advice.