ARK Invest Increases Bullish Stake Amid Crypto Market Downturn

ARK Invest Bolsters Bullish Holdings Amid Crypto Market Turmoil

Cathie Wood's ARK Invest capitalized on the recent downturn in Bullish, a publicly traded cryptocurrency exchange, to increase its stake. On Monday, ARK acquired $10.2 million worth of shares as Bullish's stock price plummeted to a new record low. According to ARK's daily trade disclosure, the ARK Innovation ETF (ARKK) added 191,195 Bullish shares, while ARKW purchased 56,660. The ARKF fund also picked up 29,208 shares. This move coincides with Bullish's (BLSH) stock tumbling 4.5% to $36.75 on Monday, extending a months-long decline that has seen the stock shed nearly 46% of its value over the past six months. The buying spree also precedes Bullish's third-quarter earnings report, scheduled for release on Wednesday. The exchange, backed by Peter Thiel, reported adjusted revenue of $57 million for Q2, down from $67 million in the same period last year, although it achieved a net income of $108.3 million compared to a $116.4 million loss the previous year.

Crypto Stocks Plunge Amid Market Sell-Off

Crypto-linked equities have experienced a significant pullback amidst the broader market downturn. Mining giants and infrastructure firms have been particularly hard hit. Marathon Digital (MARA) fell 4% on Monday and is struggling to regain momentum after a steady decline throughout the past week. Riot Platforms (RIOT) and CleanSpark (CLSK) also closed in negative territory. Michael Saylor's Bitcoin treasury company, MicroStrategy, dropped 2% yesterday and has lost over 18% in the last five trading sessions. Stablecoin issuer Circle (CRCL), which went public earlier this year, also ended the day down by more than 6%. The company is down over 26% in the past five trading days. Coinbase, the largest US-based crypto exchange, was not immune to the sell-off. COIN closed down 7% at $263.95 after a steady decline throughout the session, reflecting widespread selling of risk assets.

Bitcoin Nearing Bottom, According to Tom Lee and Matt Hougan

Bitcoin (BTC) may be approaching a market bottom as early as this week, according to BitMine chairman Tom Lee and Bitwise chief information officer Matt Hougan. Lee attributed the market rout to lingering anxieties from the Oct. 10 liquidation event and uncertainty surrounding the Federal Reserve's potential interest rate cuts in December. He suggested that technical indicators point to exhaustion in the sell-off, referencing insights from Tom Demar of Demar Analytics. Hougan echoed this sentiment, describing the current price range as a "generational opportunity" for long-term investors. He cited ETF outflows, whale selling, geopolitical tensions, nervousness around AI valuations, and concerns related to President Trump's tariff policies as contributing factors to the downturn.