Bitcoin slipped below $80,000 on Oct. 27 as traders reduced risk ahead of the Federal Reserve’s interest rate call tomorrow. While the leading cryptocurrency fell to around $79,800 at press t
Bitcoin slipped below $80,000 on Oct. 27 as traders reduced risk ahead of the Federal Reserve’s interest rate call tomorrow.
While the leading cryptocurrency fell to around $79,800 at press time, Cathie Wood’s ARK Invest yesterday trimmed exposure to its Bitcoin ETF while buying more shares of the stablecoin giant Circle Internet Group (NYSE: CRCL).
How Cathie Wood became one of crypto’s earliest believers (3:41)ARK has not said Bitcoin’s recent decline motivated the trades, and the transactions do not indicate a reversal of Wood’s long-standing bullish Bitcoin view.
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Ark bought 65,615 Circle shares on Monday through its ARK Next Generation Internet ETF, or ARKW. At Circle’s $79.84 closing price, the purchase was worth roughly $5.2 million.
At the same time, ARKW and the ARK Blockchain & Fintech Innovation ETF sold a combined 601,028 shares of the ARK 21Shares Bitcoin ETF, worth about $15.9 million at Monday’s close.
The sale was a trim rather than an exit. ARKB remained among the top 10 holdings of both funds following the trades.
The purchase came as Wall Street remained divided on the stock.
Circle, the issuer of the USDC stablecoin, closed Monday down 7.07% at $79.84, after ending Friday at $85.91.
Mizuho maintained an Underperform rating on the stock with a price target cut from $45 to $43. The firm warned that AI assistants could steer users toward higher-yielding alternatives and modelled a potential 10% to 20% medium-term hit to Circle’s reserve revenue.
Those figures are merely forecasts for Circle, not concrete losses.
Baird took a different view on Oct. 13, maintaining an Outperform rating and $100 target. It expects third-quarter revenue slightly below consensus but remains positive on Circle’s infrastructure, product roadmap and regulatory position.
Circle will report Q3 results on Nov. 4, with its earnings webcast scheduled for 8 a.m. ET.
At the time of writing, Circle shares were trading at $79.17, down about 0.8% on the day.
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