Bitcoin News Today: Ark Invest's Bullish Bet: Crypto's Long-Term Potential Amid Market Turmoil

Ark Invest, the investment firm led by Cathie Wood, has intensified its bets on crypto-related equities amid a broader market selloff, adding significant stakes in companies like Coinbase, Circle, and BitMine. The firm's Fintech Innovation ETF (ARKF) alone now holds nearly $58 million in Coinbase shares, following a $10 million infusion on Thursday. Separately, Ark Invest allocated $9 million each to Circle (CRCL) and BitMine (BMNR), expanding its exposure to the crypto sector as digital assets face renewed volatility according to recent reports. These moves come as Bitcoin tumbles below $85,000 - a 31% drop from its October peak - and as Deutsche Bank attributes the selloff to waning investor confidence, regulatory uncertainty, and institutional outflows.

Wood's firm has been a consistent buyer of undervalued crypto stocks, with Circle becoming a recurring focus. Last week, Ark Invest added $30 million in Circle shares despite the company's stock price hitting post-IPO lows. The firm's total holdings in Circle now exceed $244 million across three ETFs, reflecting its bullish stance on stablecoin adoption and blockchain infrastructure according to analysis. Similarly, BitMine-holder of $9.6 billion in Ethereum - has seen repeated support from Ark Invest, even as its shares decline amid falling ETH prices according to market data.

The broader crypto market remains under pressure, with Bitcoin's "portfolio integration" being "tested," per Deutsche Bank strategists. They cite five key factors behind the downturn: risk-off sentiment, Fed policy uncertainty, stalled regulatory progress, institutional outflows, and profit-taking by long-term holders. Bitcoin's 31% correction has triggered billions in liquidations, while ETFs tracking the asset have hemorrhaged $3.79 billion this month alone. Wood, who recently adjusted her Bitcoin price target to $1.2 million by 2030 (down from $1.5 million), acknowledges the challenges but remains optimistic about long-term adoption.

Ark Invest's strategy underscores its conviction in crypto's transformative potential, even as short-term headwinds persist. The firm's ETFs now hold over $500 million in Coinbase stock, $196 million in BitMine, and $408 million in Robinhood, positioning it as a key player in shaping crypto's institutional narrative according to market analysis. However, with regulatory clarity delayed and macroeconomic risks looming, the path to stabilization remains uncertain - a dynamic Deutsche Bank describes as "unlike prior crashes", given the scale of institutional involvement this time.