Ark Invest, led by Cathie Wood, has boosted its Bitcoin portfolio, acquiring 997 BTC worth $80 million through Coinbase on March 13.
According to Arkham Intelligence, the purchase was split into two transactions—one for 498 BTC and another for 499 BTC. This strategic move comes as institutional investors shift their positions in response to market volatility.
Bitcoin Buy and ETF Sell-Off
While increasing its Bitcoin holdings, Ark Invest has also offloaded approximately $9 million worth of Bitcoin ETFs. This follows a broader trend, with spot Bitcoin ETFs seeing outflows exceeding $1.1 billion recently.
Bitcoin Price Struggles Amid Market Fear
Bitcoin is currently facing resistance at $83,700, with concerns of a potential dip to $75,000. Despite this, Cathie Wood remains optimistic, reaffirming her prediction that Bitcoin could reach $1 million by 2030.
Key Market Indicators
- 200-Day Moving Average: Bitcoin's 200-day moving average, a critical support level, stands at $82,000.
- Short-Term Bear Positions: Ark’s report indicates that short-term Bitcoin bears are paying an average of $92,020 per BTC.
- Fear & Greed Index: The index has hit a two-year low, signaling “extreme panic” not seen since 2017.
A potential bullish sign is Bitcoin’s Spent Output Profit Ratio (SOPR) resetting to 1, meaning sellers are breaking even instead of incurring losses. Historically, this has preceded price rebounds.
Bitcoin’s Reaction to Market & Politics
Ark Invest’s report, Bitcoin Reacts to Trump, attributes recent market turbulence to reduced Bitcoin circulation and declining consumer confidence, particularly in the U.S. amid political uncertainty.
"Consumers and businesses appear more cautious due to uncertainties surrounding the U.S. political transition," the report states.
As Bitcoin navigates this volatile phase, all eyes remain on its next big move. Will it break resistance or test lower support levels? Time will tell.
