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Cathie Wood Sells Coinbase Stock at All-Time Low: Is It Bounce Indicator?

Wed, 07/27/2022 - 08:40
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Arman Shirinyan
One of most popular investors in world bought high and sold low
Cathie Wood Sells Coinbase Stock at All-Time Low: Is It Bounce Indicator?
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The most popular investment fund in 2020 and 2021 has sold its biggest crypto-related holding, which is the stock of one of the biggest centralized exchanges in the world: Coinbase. For whatever reason, ARK has sold the crypto-related holding at an all-time low.

Following the release of the fund's earnings, COIN stock plunged massively and lost more than 20% of its value almost immediately. Reportedly, the fund sold its holdings at $53, which makes its loss mind-blowing, considering the cost average for ARK's purchase at $254.

ARK took a massive 85% loss, which might be one of the biggest blows for Cathie Wood's fund that shows that the short-term success of the company is not necessarily a guarantee of productive performance in the long term. Funds that use a less risky investment strategy like Berkshire Hathaway have already over-performed numerous Ark Investment funds.

3 Reasons Not to Give Up on Ethereum Recovery Despite Plunge Below $1,500: Crypto Market Review, July 26

Unfortunately, the overall performance of ARK funds is not as good as some investors would expect, considering the fund's heavy investments in technological stocks. Those stocks took a huge hit in 2022 after the tightening of the country's monetary policy.

Coinbase is not feeling so good

While ARK's performance shows nothing but pain, Coinbase and crypto-related stocks are taking a huge blow in the first and second halves of the year. COIN lost almost 60% of its value in the last three months despite being in a sharp downtrend since November.

The same story is applicable to cryptocurrency mining-related stocks that mostly follow the performance of the first cryptocurrency. The crypto market itself is currently sitting at around a 70% loss.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.