TLDR
- ARK Invest Sells $3.9M worth of Coinbase Shares (13,780 Shares) Amid Market Drop
- Bitcoin hit a high of $108,135 before falling to $97,430
- The Federal Reserve’s hawkish stance on 2025 interest rates triggered a market correction
- ARK still maintains significant Coinbase position with 2.45M shares ($672M)
- The market crash affected the broader crypto ecosystem, with Ethereum down 12%
The cryptocurrency market saw a significant correction this week, with Bitcoin retreats from its new all-time high as major investment firm ARK Invest adjusts its cryptocurrencies. The market move came amid broader reactions to the Federal Reserve’s comments on future interest rate policies.
ARK Invest, led by Kathy Wood, sold 13,780 shares of Coinbase (NASDAQ: COIN ) worth approximately $3.9 million on Wednesday. The sale was made through Ark Fintech Innovation ETF (ARKF) as part of its portfolio rebalancing strategy.
The timing of the sale coincided with a broader market decline that sent Coinbase’s stock price down to $274 a share, down 2% on the day and down 13% over five days. Despite the recent sale, ARK Invest retains a significant position in Coinbase, holding over 2.45 million shares worth $672 million.
The market correction came after Bitcoin hit a new all-time high of $108,135 on Tuesday, according to data from CoinGecko. The price of the leading cryptocurrency has since fallen to $97,430, representing a drop of almost 4% in the last 24 hours.
Federal Reserve Chairman Jerome Powell’s recent speech played a central role in changing the market’s direction. Powell’s comments suggest a more conservative approach to interest rate cuts in 2025 than many market participants expected, leading to a widespread price adjustment in both crypto and traditional financial markets.
The impact of the correction spread even further Bitcoinaffecting other major cryptocurrencies in the ecosystem. Ethereum, the second largest cryptocurrency by market capitalization, experienced a steeper decline, falling approximately 12% during the correction period.
The recent market developments come during a year that has seen significant growth in crypto asset prices, particularly following the election of Donald Trump on November 5. The former president’s campaign promises of reduced regulation and support for the digital assets industry had previously contributed to positive market sentiment.
This week’s sale marks another example of ARK Invest’s active management of its Coinbase position. The investment firm has made similar moves before, including selling more stock worth nearly $52 million in March as part of its portfolio management strategy.
The current market correction represents a departure from the recent uptrend that has seen Bitcoin and other crypto assets reach new price levels. The price movement of the leading cryptocurrency from its peak above $108,000 to current levels below $98,000 highlights the continued volatility of the market.
These price fluctuations are occurring against the backdrop of increased institutional interest in the cryptocurrency markets. Coinbase, as the largest US crypto exchange, has served as a barometer for institutional engagement with digital assets since its 2021 IPO.
Market participants have noticed a correlation between cryptocurrency prices and broader economic indicators, particularly the Federal Reserve’s monetary policy decisions. Recent price action shows how traditional financial market factors continue to influence the valuation of crypto assets.
The timing of the correction, which occurs during the pre-holiday period, has some market watchers watching to see if year-end trading patterns can affect price action. The reduced trading volume typical of holiday periods can sometimes lead to increased price volatility.
Trump’s promised appointments of Silicon Valley tech figures to the administration and his intentions to support the digital asset industry remain factors in long-term market considerations. However, the market’s current response to the Federal Reserve’s policy indicators suggests that monetary policy remains the primary driver of near-term price action.
ARK Invest’s portfolio adjustment comes as part of their regular rebalancing activities, with the firm maintaining its position as one of the largest institutional investors in Coinbase. This investment firm’s continued significant participation in the crypto exchange indicates their long-term perspective in the digital asset sector.
Current price levels show Bitcoin trading at $97,430, with the entire crypto market experiencing varying degrees of correction across assets. This price action follows a period of sustained growth in which multiple cryptocurrencies have reached new price milestones.
