Ark Invest Purchases $80M in Bitcoin as Price Falls Below $83K
Cathie Wood's Ark Invest has expanded its Bitcoin portfolio by purchasing 997 BTC worth $80 million through Coinbase on March 13. The transaction was executed in two parts – 498 BTC and 499 BTC – according to data from Arkham Intelligence, according to Yahoo finance reporting.
The purchase comes at a time when Bitcoin is facing resistance at $83,700, with some market analysts concerned about a potential drop to $75,000. Despite these short-term challenges, Wood maintains her bullish outlook, having previously forecast Bitcoin reaching $1 million by 2030.
While Ark Invest adds direct Bitcoin holdings, the company has simultaneously sold approximately $9 million worth of Bitcoin ETFs. This mirrors broader market behavior, with over $1.1 billion flowing out of spot Bitcoin ETFs recently.
Ark's monthly report reveals that Bitcoin's 200-day moving average currently sits at $82,000, serving as a key support level. The report also notes that short-term Bitcoin bears are paying an average of $92,020 per BTC.
Market sentiment has reached extreme lows, with Bitcoin's Fear & Greed Index hitting its lowest point in two years. This level of "extreme panic" hasn't been observed since 2017, according to Ark's analysis.
One potentially positive sign is that Bitcoin's Spent Output Profit Ratio (SOPR) has reset to 1, suggesting sellers are breaking even rather than taking losses. This metric has historically signaled the beginning of price recoveries in previous market cycles.
Ark attributes the current market downturn to several factors:
- Slowing Bitcoin circulation
- Declining consumer sentiment
- Political uncertainty in the United States
The report specifically notes that "Consumers and businesses seem to be more cautious amid uncertainty associated with the U.S. political transition."
The report specifically notes that "Consumers and businesses seem to be more cautious amid uncertainty associated with the U.S. political transition."
Ark's Bitcoin strategy appears part of a broader portfolio adjustment. The firm also purchased 38,865 Coinbase shares worth $8 million for its Next Generation Internet ETF (ARKW) while simultaneously selling $8.2 million of its own spot Bitcoin ETF (ARKB). This pattern of buying exchange shares while rebalancing Bitcoin ETF holdings has become a consistent strategy for the investment firm in recent months.
