On August 28, Ark Invest sold $100 million worth of Bitcoin. According to Arkham Intelligence, the company led by Cathie Wood retains assets worth about $2.6 billion.
Ark Invest's Bitcoin Sale
Arkham Intelligence reports that ARK 21Shares Bitcoin ETF (ARKB) was responsible for the vast majority of outflows recorded on August 28. On that day, Bitcoin's price dropped to $57,866 on the Bitstamp exchange.
Factors Affecting Price Drop
Glassnode co-founders Jan Happel and Yann Allemann noted that the post-weekend price drop was caused by a decline in U.S. equities. Recently, Bitcoin's intraday correlation with the S&P 500 has significantly increased. In the options market, risk reversals are currently skewed towards puts for both Bitcoin and Ethereum, indicating that traders remain cautious.
Forecasts and Expectations
Various market experts believe that the widely expected September rate cut will be a significant market catalyst. However, a bigger-than-expected rate cut could cause significant market volatility. Earlier today, Bitcoin managed to reclaim the $60,000 level, but it has since pared some of its gains. Ark Invest CEO Cathie Wood has repeatedly made uber-bullish Bitcoin price predictions. In March, she forecasted that Bitcoin could reach as high as $3.8 million in the long term due to growing institutional adoption.
While Ark Invest continues to hold a significant amount of Bitcoin, the market remains cautious and is closely watching future changes in Fed policy and their impact on cryptocurrencies.
Comments