Cathie Wood's Ark Invest sold 2,046 Coinbase shares worth about $450,000 before the exchange’s Q2 earnings report.
This decision follows a drop in Bitcoin prices and negative market sentiment, which led to lower trading volumes on Coinbase. The stock has averaged around $230 over the past six months.
The Crypto Fear and Greed Index dropped to 25 (extreme fear) from 70 (greed), with Bitcoin and other cryptocurrencies hitting their lowest levels since February.
Despite this, there is optimism for a recovery due to potential Fed rate cuts in September. Historically, the third quarter is slow for crypto markets, explaining ARKF’s recent selloff.
Even after these sales, Coinbase remains ARKF’s top holding, making up 10.28% of its assets.
The reduction in COIN shares suggests concerns about Coinbase’s Q2 earnings report on August 1. Analysts predict a 31% drop in EPS to $1.06.
Despite rising revenue and net income for three quarters, the outlook is cautious. COIN closed 1.58% higher at $218.02 on Friday but has fallen 12% over the past month due to negative market sentiment.
U.S. inflation accelerated in June, dealing a potential setback to expectations of imminent Federal Reserve rate cuts.
In a surprising long-term performance shift, gold has officially outpaced the U.S. stock market over the past 25 years—dividends included.
The United States has rolled out a broad set of new import tariffs this week, targeting over 30 countries and economic blocs in a sharp escalation of its trade protection measures, according to list from WatcherGuru.
After a week of record-setting gains in U.S. markets, investors are shifting focus to a quieter yet crucial stretch of macroeconomic developments.