Cathie Wood’s Ark Invest has continued to reduce its holdings in Coinbase (COIN) amid a volatile market environment. This offloading may triggered a dip in COIN stock price in the pre-market session today. Moreover, the crypto market sentiment turned bearish as Mt. Gox wallets woke up with gigantic Bitcoin (BTC) transfers.
Also Read: Coinbase Vs. SEC: Coinbase Refines Subpoena for SEC Chair Gensler
Cathie Wood’s Ark Invest Dumps Coinbase Shares
On Monday, July 15, Ark Invest offloaded 1,895 COIN shares, valued at over $460,000. This move follows a remarkable 11% rally that pushed Coinbase stock past $240, indicating Ark’s motive to capitalize on the profits. Moreover, this move came just days after Ark Invest sold 2,046 shares worth nearly $450,000 on Friday.
Despite these market uncertainties, Ark Invest remains active in its portfolio management strategy. The decision to reduce its stake in Coinbase reflects Ark’s proactive approach to portfolio adjustment amid evolving market dynamics.
Notably, Coinbase remains a significant holding in Ark Fintech Innovation ETF, comprising 11.04% of the fund’s portfolio with a value exceeding $100 million. At press time, Coinbase stock dropped 1.98% to $239. Earlier, on Monday, the stock closed at $242.85, indicating a phenomenal surge of 11.39%.
Crypto Market Sentiment
The recent sell-offs by Ark Invest, particularly through its Ark Fintech Innovation ETF (ARKF), coincide with uncertainty in the crypto market. Today, the Crypto Fear and Greed Index surged to 65 (greed) from a neutral position of 52. This increase followed a recovery in Bitcoin and altcoin price. However, the market outlook remains tempered by the recent Mt. Gox wallet movements, which have stirred speculation of a potential Bitcoin selloff.
Mt. Gox, the infamous cryptocurrency exchange that collapsed in 2014, recently transferred over 95,870 BTC worth a over $6 billion from its long-held reserves to internal wallets. Further, this movement has raised concerns about a potential BTC selloff, potentially impacting rhe price.
The ongoing saga of Mt. Gox, including its $9 billion repayment to creditors, continues to influence market sentiment. In addition, this contributed to Bitcoin’s recent drop below the $63,000 mark. Netizens expect creditors to liquidate BTC received from Mt. Gox to realize massive profits as BTC was worth only $600 at the time of hack. Hence, the Crypto Fear & Greed Index could also see a shift as the sentiment changes.
Also Read: Breaking: Mt Gox Transfers Bitcoin To New Wallet, Sign of Repayment?
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Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.