Crypto Markets Fall On Covid Fears, Cathie Wood Keeps Adding Bitcoin Related Stocks

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Last Updated on 20 July 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Stock markets around the world fell over fears that the spread of the new Delta variant (the US airline with the same name is not happy about that Greek letter choice) might hamper recoveries. Crypto markets fall in response as investors took their money out of speculative assets. Cathie Wood’s ARK fund remains contrarian and she invested in the long term growth potential of Bitcoin, buying shares in Square and Coinbase.

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Delta variant fears

On Monday evening, the Dow Jones Industrial Average in New York fell by over 2%, after stock markets in Europe had shown similar falls over fears the Delta variant might spread further and threaten the economic recovery.

CoinMarketCap is showing that Bitcoin fell below $30k in response while Ethereum is trading near the $1,700 mark. Almost all major cryptocurrencies were down in response.

At the time of writing, Asian stocks followed their western peers on Tuesday morning and in Japan, the Nikkei 225 index traded at its lowest level of the past six months.

ARK keeps buying crypto related stocks

Last Thursday, Twitter and Square CEO (and known Bitcoin supporter) Jack Dorsey announced he would increase Bitcoin related activities at his companies. More specifically, he would open up a business division completely focused on Bitcoin over at fintech company Square.

Dorsey explained:

Square is creating a new business (joining Seller, Cash App, & Tidal) focused on building an open developer platform with the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services. Our primary focus is Bitcoin.

Few days later and ARK investment, the fund run by Cathie Wood (still the best stock picker on Wall Street of 2020) announced in response that it was adding even more shares of Square to its portfolio. By now, ARK holds a whopping $1.7 billion in Square stock (or some 7.2 million shares). Together with the Tesla and Coinbase stock she holds, Wood is going all in to Bitcoin related stocks apparently.

ARK Telsa Bitcoin

With that, Ark Investment Management’s Cathie Wood once again brushes aside any concerns about Bitcoin’s environmental impact (which she feels will not derail its long-term path) or the fact that ARK, Tesla and Bitcoin prices are by now so interconnected that any future Bitcoin price crash could disrupt the stock price of her own company.

During an interview with CNBC, Wood stated that despite China’s recent crackdown:

It’s healthier to disperse that mining, and a lot of that is coming toward the U.S. using renewables.

ARK also snapped up another 210,000 shares of Coinbase last week, a company she believes in strongly. With that, Ms Wood once again sounds very bullish when it comes to crypto and Bitcoin.

denisismagilov / Depositphotos.com