Amid this week’s crypto market correction, Ark Invest’s CEO and CIO, Catie Wood, has slashed her 2030 bullish forecast for Bitcoin (BTC), highlighting the global momentum of the stablecoin sector.

Stablecoins Overtake Part Of BTC’s Role

On Thursday, Ark Invest’s CEO, Cathie Wood, joined CNBC’s “Squawk Box” to discuss Bitcoin’s price, her thoughts on stablecoins’ growth, and how her previous bullish forecast for the flagship crypto has evolved over the past year.

In the interview, Wood underscored that the rapid rise of stablecoins is taking on a role she thought BTC would handle, leading to a 20% reduction of her $1.5 million prediction by 2030. It’s worth noting that the investment management firm has previously affirmed that the leading cryptocurrency could serve as a store of value and a global settlement system.

“Stablecoins are usurping part of the role that we thought bitcoin would play,” Wood affirmed on Thursday morning. “Given what’s happening to stablecoins, which are serving emerging markets in a way that we thought bitcoin would, I think we could take maybe $300,000 off of that bullish case just for stablecoins.”

“Emerging markets are huge in this regard,” she said, adding that “we’re starting to see institutions in the United States focused on new payment rails, with stablecoins at the core. So very interesting movement.”

Notably, the sector has seen rapid adoption following the enactment of the GENIUS Act in the US, with other leading jurisdictions, including the UK and South Korea, pushing to establish their own regulatory framework in the coming months.

Similarly, multiple leading companies in the traditional payment system are preparing strategic moves into the stablecoin sector. Last week, the global financial services company Western Union announced its plan to launch the US Dollar Payment Token (USDPT) on the Solana blockchain.

To Wood, “Stablecoins are scaling here much faster than anyone would have expected,” making it a space to watch in the future.

Wood Is Still Bullish On Bitcoin

Despite recalibrating her 2030 bull case, Ark Invest’s CEO emphasized that she remains bullish on Bitcoin, noting that growing institutional adoption will be a powerful driver for long-term value.

Currently, the flagship cryptocurrency has declined 20% from its October 6 all-time high (ATH) of $126,000, briefly falling below the $100,000 mark earlier this week. Nonetheless, most market analysts and investors remain bullish on BTC’s long-term performance.

Wood highlighted that “Bitcoin is a global monetary system, it is the lead in a new asset class, and it’s a technology, all wrapped in one.” She added that institutional participation in the sector has only begun, stating, “Institutions really have just dipped their toes into this space. We have just started, so we have a long way to go.”

The CEO closed her observations by affirming that the broader crypto ecosystem is expanding, not contracting. “I think the whole space gets bigger,” she concluded.

After failing to close the week above a crucial level, Bitcoin (BTC) is attempting to hold $100,000 as support, leading some analysts to suggest that this is the make-or-break moment for the cryptocurrency.

Bitcoin Plunges To Physiological Barrier

On Tuesday, Bitcoin saw a 9% drop from its weekly opening, dropping to the $100,000 area for the first time in months. The flagship crypto has been trading above $105,000 since late June, hovering between $108,000-$120,000 over the past four months.

During the early October correction, BTC’s price briefly deviated below these crucial levels, hitting a three-month low of $102,000 before recovering. Since then, the cryptocurrency has struggled to reclaim the mid-zone of its local range, falling to the $106,000-$108,000 area multiple times in the daily timeframe.

As the price retested the $100,000 level, Sjuul from AltCryptoGems noted that Bitcoin has now broken below its 10th of October low, which was “the last major level before the $98K low from the Middle Eastern war fud back in June.”

Analyst Ted Pillows highlighted that BTC has two massive liquidity clusters on the longer timeframes. Per the chart, the first cluster sits around the $90,000 level, which also coincides with an open CME Gap from Q2.

Meanwhile, the second cluster sits around the all-time high area at $126,000. “Given that the market is looking weak now, a dump to fill the CME gap before reversal could happen,” the market watcher warned.

However, Ali Martinez suggested that a 5%-11% rebound from the current area is possible. The chart shows that Bitcoin has been trading between $101,300-$124,000 price range since May, bouncing from the lower boundary each time it was retested. If BTC holds this area, it could surge to at least $106,500 or $112,000, the analyst asserted.

BTC Retests 50-Week EMA

Rekt Capital highlighted that BTC had reached the 50-week Exponential Moving Average (EMA). The analyst explained that after closing below the 21-week EMA, Bitcoin was deviating below its range lows for the fifth consecutive week.

The 21-week EMA has served as crucial support during pullbacks since late Q2. However, it was lost amid the recent market volatility. Last week, multiple analysts warned that closing above this level was crucial to turn it back into support and prevent a larger pullback.

Per the Tuesday post, the 50-week EMA, sitting around the $100,000 level, “would probably only get tagged on confirmed breakdown from $108k,” meaning that the flagship crypto will need to close the week above this level to maintain its current price range.

Similarly, Crypto Bullet pointed out that the 50-week MA retest was “the moment of truth” for BTC. Notably, the cryptocurrency has retested this indicator three times this cycle, marking the bottom of each corrective phase and the start of a new rally to a new all-time high (ATH).

The market watcher warned that losing this level would mean “it’s lights out” for the flagship cryptocurrency. However, a rebound from this area could set the stage for a price recovery and a potential bullish rally in late Q4.

As of this writing, Bitcoin is trading at $100,356, a 6% decline in the daily timeframe.