Ark Invest

Cathie Wood’s ARK loading up on Coinbase shares again, buying $18M

ARK Invest purchased 269,928 shares in Coinbase on March 23, only two days after it sold $13.5 million, its first sale of Coinbase shares this year.

Cathie Wood’s investment management firm has gone back to buying Coinbase shares again, just a day after COIN’s stock price dipped amid news of its Wells notice.

On March 23, ARK Invest purchased 268,928 Coinbase shares via its ARKK Innovation and ARKW Next Generation Internet exchange-traded funds. The shares wereworth $17.88 million at the time of writing.

Only two days prior, and before the news of the Wells notice broke, ARK Invest sold 160,887 Coinbase shares from its ARK Fintech Innovation ETF. The sale was the first time any of ARK Invest’s ETFs shed Coinbase shares in 2023.

Cathie Wood and Ark Invest’s trade activity from today 3/23 pic.twitter.com/yyubxTegZj

— Ark Invest Daily (@ArkkDaily) March 24, 2023

Coinbase’s share price has failed to recover since it shared news it had received a Wells notice warning of possible enforcement action from the Securities and Exchange Commission, which led to COIN shares dropping around 21%.

Shares in Coinbase dipped to a low of $64.27 after trading began on March 23, and at time of writing were trading at $66.87 in after-hours trading, according to Barron’s.

*Coinbase’s share price from March 17 to March 23. Source:* *Barron’s*

Coinbase CEO Brian Armstrong had also sold shares in his firm between March 17 to March 20 — just days prior to the Wells notice and share price dip.

SEC filings indicate, however, that Coinbase executives and insiders all enter into 10B5-1 selling plans months in advance and that this tranche of sales was pursuant to a trading plan adopted on Aug. 16.

*SEC filing showing the latest shares sold by Coinbase CEO Brian Armstrong. Source:* *SEC Archives*

While the SEC reached a settlement with crypto exchange Kraken on Feb. 9 after alleging its staking services qualified as securities, Coinbase has repeatedly asserted that its staking products are fundamentally different from Kraken’s and they cannot be universally labeled as securities.

Magazine: Best and worst countries for crypto taxes — Plus crypto tax tips

Bitcoin’s banking crisis surge will ‘attract more institutions’: ARK’s Cathie Wood

Cathie Wood was impressed that Bitcoin “moved in a very different way” compared to the equity market in response to the recent banking crisis.

The value proposition of Bitcoin (BTC) is on full display amid the current banking crisis, which will only “attract more institutions” to the BTC market over time, ARK Invest CEO Cathie Wood believes.

Wood shared her thoughts on BTC’s recent price surge in a March 21 Bloomberg interview, stating its price behavior through the crisis “is going to attract more institutions.”

“The fact that Bitcoin moved in a very different way from the equity markets, in particular, was quite instructive,” she added.

ARK Investment Management CEO Cathie Wood says the behavior of the Bitcoin’s price through the latest banking turmoil will attract more institutions and investors https://t.co/2d8cT7SX3n pic.twitter.com/Eaymh05lhq

— Bloomberg Crypto (@crypto) March 21, 2023

Institutional interest in Bitcoin may have already arrived according to Oliver Linch, the CEO of Seattle-based crypto exchange Bittrex.

Linch noted in a March 21 interview on The Wolf Of All Streets Podcast that many big banks bought into crypto as an investment product well before the recent banking crisis:

“The big talking point of this bear market is institutional interest in crypto. Every big bank now has a substantive crypto desk, not just for trading, but for partnerships as well.”

However, he noted there’s still a divide between traditional financial institutions and crypto firms which has caused headwinds in institutional adoption over the last few months.

“Historically, those big players have been the biggest drivers of innovation,” he said, before claiming the two sides are currently “stuck in a bit of a rut” and the “big change” won’t happen until they stop fighting for superiority.

“It’s not crypto versus Goldman Sachs or crypto versus institutions. It’s a race to who can do crypto better.”

As for the impact on Bitcoin’s price from the institutional interest, Wood explained in the interview that ARK Invest’s $1-1.5 million BTC price prediction by 2030 was made on the back of an institutional investor BTC allocation analysis, which estimates most firms to allocate between 2.5% to 6.5% to BTC in their investment portfolios.

“These are the sorts of allocations that they would have made to emerging, new categories of assets like real estate in the 70s and small caps in the 80s and 90s,” Wood added.

*ARK Invest estimates the BTC price towards $1.5 million will be pushed by institutional investors allocating between 2.5-6.5% of their portfolio into BTC. Source:* *ARK Invest*

Linch, on the other hand, believes that “aggressive” institutional adoption will come when opportunities become more easily identifiable:

“Show them a way that it can be done and it can make them money and I guarantee you they won’t stand in the way of that. They’ll be pedal to the metal to exploit that opportunity.”

Positive sentiment has surrounded Bitcoin following the collapses of Silvergate Bank, Silicon Valley Bank and Signature Bank. The BTC price has surged 43.6% since its most recent low on March 11, compared to a 25.3% increase in the broader crypto market over that time, according to CoinGecko data.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Bitcoin’s banking crisis surge will ‘attract more institutions’: ARK’s Cathie Wood

Cathie Wood was impressed that Bitcoin “moved in a very different way” compared to the equity market in response to the recent banking crisis.

Wood shared her thoughts on BTC’s recent price surge in a March 21 Bloomberg interview, stating its price behavior through the crisis “is going to attract more institutions.”

“The fact that Bitcoin moved in a very different way from the equity markets, in particular, was quite instructive,” she added.

ARK Investment Management CEO Cathie Wood says the behavior of the Bitcoin’s price through the latest banking turmoil will attract more institutions and investors https://t.co/2d8cT7SX3n pic.twitter.com/Eaymh05lhq

— Bloomberg Crypto (@crypto) March 21, 2023

Institutional interest in Bitcoin may have already arrived, according to Oliver Linch, the CEO of Seattle-based crypto exchange Bittrex.

Linch noted in a March 21 interview on The Wolf Of All Streets podcast that many big banks bought into crypto as an investment product well before the recent banking crisis:

“The big talking point of this bear market is institutional interest in crypto. Every big bank now has a substantive crypto desk, not just for trading, but for partnerships as well.”

However, he said that there’s still a divide between traditional financial institutions and crypto firms, which has caused headwinds in institutional adoption over the last few months.

“Historically, those big players have been the biggest drivers of innovation,” he said, adding that the two sides are currently “stuck in a bit of a rut” and that the “big change” won’t happen until they stop fighting for superiority.

“It’s not crypto versus Goldman Sachs or crypto versus institutions. It’s a race to who can do crypto better.”

As for the impact on Bitcoin’s price from the institutional interest, Wood explained in the interview that ARK Invest’s $1-1.5 million BTC price prediction by 2030 was made on the back of an institutional investor BTC allocation analysis, which estimates most firms would allocate between 2.5% to 6.5% to BTC in their investment portfolios.

“These are the sorts of allocations that they would have made to emerging, new categories of assets like real estate in the 70s and small caps in the 80s and 90s,” Wood added.

Linch, on the other hand, believes that “aggressive” institutional adoption will come when opportunities become more easily identifiable:

“Show them a way that it can be done and it can make them money and I guarantee you they won’t stand in the way of that. They’ll be pedal to the metal to exploit that opportunity.”

Positive sentiment has surrounded Bitcoin following the collapses of Silvergate, Silicon Valley Bank and Signature banks. BTC has surged 43.6% since its most recent low on March 11, compared with a 25.3% increase in the broader crypto market over that time, according to CoinGecko data.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Bitcoin is beating Warren Buffett’s ‘crypto bet’ in 2023

Bitcoin’s rebound in 2023 has also seen Coinbase stock gaining over 100% year-to-date, boosting Cathie Wood’s ARK portfolio.

In 2023, Bitcoin (BTC) and Cathie Wood’s Coinbase (COIN) investment are finally outperforming Warren Buffett’s popular “crypto bet” in Brazil’s fintech giant Nubank (NU).

Bitcoin vs. crypto-exposure stocks NU, COIN

As of March 17, Bitcoin’s price is up nearly 55% year-to-date (YTD). In comparison, Nubank has risen by only 26%. Meanwhile, another crypto-exposure asset, namely Coinbase stock (COIN), has seen the biggest rebound of the three, rising over 100% YTD.

*BTC/USD and COIN versus NU yearly performance. Source: TradingView*

Nevertheless, Buffett’s investment has fared better than COIN over the past 12 months.

As of March 17, NU is down 38% year-over-year compared to COIN’s 61.76%, nearly equal to Bitcoin’s 37% losses in the same period.

Warren Buffett sticks by his neobank investment

Buffett’s investment firm Berkshire Hathaway purchased $1.50 billion worth of class-A Nubank stock in two separate rounds in July 2021 and February 2022.

The news came as a surprise to many since Buffett is a well-known cryptocurrency critic, and Nubank offers crypto trading services via one of its wings called Nucripto. In May 2022, the bank said that it would allocate 1% of its net assets to Bitcoin.

“This move reinforces the company’s conviction in Bitcoin’s current and future potential in disrupting financial services in the region,” Nubank said at the time.

But despite Nubank’s crypto exposure and NU’s price decline, Buffett has not sold a single share, according to Berkshire’s latest annual earnings report.

The decision to keep holding NU through a rough market likely coincides with Nubank’s growth in the Latin American banking sector.

Nu Holdings, the parent company of Nubank, reported a solid 2022 with 140% year-on-year growth in revenue and a 38% year-over-year rise in active customers.

Cathie Wood doubling down on COIN in 2023

The same cannot be said about Coinbase’s earnings in 2022 with its 57% drop in year-over-year revenue.

But ARK Invest CEO, Cathie Wood, appears unfazed by continuing to buy COIN shares via her ARK Next Generation Internet ETF (ARKW) and ARK Innovation ETF (ARKK) in 2023. The COIN buys, in particular, account for roughly 30% of all the stock purchased so far this year.

*COIN weight across ARK ETFs portfolios. Source: Ark Invest*

As a result, Coinbase has become Wood’s fifth-largest holding on record worth nearly $670 million at the time of writing.

Holding Bitcoin a better strategy?

Comparing Bitcoin’s price performance with the market debut of Coinbase and Nu Holdings reaffirms that BTC not only regularly outperform stocks, but also crypto-exposure stocks. Although exceptions have been seen, such as with the Bitcoin mining stock boom in 2021.

But overall, holding Bitcoin is proving to be a better strategy year-over-year, and likely with more upside potential, than traditional stocks.

Notably, NU has dropped by more than 50% since its market debut in December 2021. Since then, BTC has fared better with a 44% decline in the same period.

*NU’s returns since market debut vs. BTC. Source: TradingView*

Similarly, COIN is down 80% since its IPO in April 2021. The same down-cycle, however, has seen Bitcoin only losing around 50%, emerging as better performer overall against crypto-exposure stocks such as Coinbase and Nu Holdings.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Ark Invest CEO eyes crypto turnaround amid whiffs of a Fed pivot

The crypto and innovative tech investment firm is confident that inflation will fall and the Fed will pivot in 2023.

The chief executive from crypto and tech investment firm Ark Invest believes crypto assets will see a huge turnaround this year as inflation falls and the Fed pivots.

In a company video blog on Jan. 23, Ark Invest CEO and CIO, Cathie Wood, started with a glance at the macroeconomic outlook. She said there was all kind of signals pointing to lower inflation which “suggests that the Fed should pivot soon.”

This would be beneficial for risk-on assets such as crypto as the macroeconomic outlook improves and financial belts are loosened.

*Ark Invest’s Cathie Wood and Brett Winton on their 2023 outlook. Source: Ark Invest*

She added that the firm believes inflation will come down to the 2% Fed target level. However, Wood predicted that inflation could fall below this level and even into negative territory because the money supply has been falling.

The market is waiting for a signal from the Federal Reserve, she said adding “we think that will come in the first half of 2023.” She said that Ark Invest portfolios should do very well if interest rates are about to fall below expectations.

Ark has a crypto asset fund, blockchain venture investments, a disruptive innovation fund, and six active technology and fintech-based exchange-traded funds (ETFs).

Meanwhile, Ark’s Chief Futurist Brett Winton spoke of artificial intelligence (AI), noting that advances would accelerate in 2023. He also predicted that crypto assets would see a big turnaround this year.

“Public blockchains, cryptocurrencies, and crypto assets which are going through a bumpy period right now are going to become even more differentiated for their scarcity in an age of abundance.”

He added that when there is a turn in the macro environment, and the Fed “changes its spots,” the opportunity for “expansion and value realization within the venture and public market space is even larger.”

Wood concluded that these technological innovations are deflationary which will “cause a boom in the products and services associated with this innovation.”

Ark Invest’s most recent move was to take profit on some of its Grayscale Bitcoin Trust (GBTC) holdings and load up on 320,000 Coinbase (COIN) shares worth around $17.6 million.

ARK Invest CEO sees potential crypto rebound amid whiffs of a Fed pivot

Cathie Wood, head of the crypto and innovative tech investment firm, is confident that inflation will fall and that the Fed will pivot in 2023.

The chief executive from crypto and tech investment firm ARK Invest believes crypto assets will see a huge turnaround this year as inflation falls and the Fed pivots.

In a company video blog on Jan. 23, ARK Invest CEO and chief investment officer Cathie Wood began with an overview of the macroeconomic outlook. She said there was all kind of signals pointing to lower inflation, which “suggests that the Fed should pivot soon.”

This would be beneficial for risk-on assets such as crypto as the macroeconomic outlook improves and financial belts are loosened.

The market is waiting for a signal from the Federal Reserve, she said, adding that “we think that will come in the first half of 2023.” She said that ARK Invest’s portfolios should do very well if interest rates are about to fall below expectations.

ARK has a crypto asset fund, blockchain venture investments, a disruptive innovation fund and six active technology and fintech-based exchange-traded funds (ETFs).

Meanwhile, ARK Chief Futurist Brett Winton spoke about artificial intelligence (AI), noting that advances would accelerate in 2023. He also predicted that crypto assets would see a big turnaround this year.

“Public blockchains, cryptocurrencies and crypto assets which are going through a bumpy period right now are going to become even more differentiated for their scarcity in an age of abundance.”

He added that when there is a turn in the macro environment and the Fed “changes its spots,” the opportunity for “expansion and value realization within the venture and public market space is even larger.”

Wood concluded that these technological innovations are deflationary, which will “cause a boom in the products and services associated with this innovation.”

ARK Invest’s most recent move was to take profit on some of its Grayscale Bitcoin Trust (GBTC) holdings and load up on 320,000 Coinbase (COIN) shares, worth around $17.6 million.

Cathie Wood: Ark dumps 500K GBTC shares, adds Coinbase stock as Bitcoin recovers 40%

Ark’s GBTC weight in the portfolio actually increased despite the fund selling 500,000 shares in the past month.

Cathie Wood’s Ark Invest offloaded a chunk of its Grayscale Bitcoin Trust (GBTC) shares since November’s Bitcoin (BTC) price lows, the latest data shows.

Cathie Wood’s Ark short-term cautious on GBTC

Ark Invest added 450,272 GBTC shares worth $4.5 million to its ARK Next Generation Internet ETF (ARKW) in November 2022. At the time, GBTC was trading in the $7.46-$9.48 range versus $12.25 in January 2023.

GBTC price, of course, recovered alongside Bitcoin, rising roughly 40% from its November lows. The recovery in January also helped reduce the GBTC “discount” from nearly 50% to 40%, according to YCharts.

*GBTC daily price chart. Source: TradingView*

Interestingly, the share price rebound coincided with a reduction in ARKW’s GBTC holdings by 500,000 shares, suggesting profit taking in the short term.

*GBTC shares (purple) in Ark’s ETF versus its price (orange). Source: Cathiesark.com*

Moreover, Ark’s reduction in shares since November appears in line with its officially “bearish view” on the Grayscale Bitcoin Trust, as mentioned in its December report, which stated that:

“The Digital Currency Group (DCG) appears to be one of the biggest questions marks in the crypto industry at this time.”

The company also expressed concerns about Genesis Global, a cryptocurrency lender owned by DCG. Genesis filed for bankruptcy while claiming $1 billion to $10 billion in liabilities to over 100,000 creditors.

Meanwhile, Grayscale has been unable to convert its Bitcoin trust into an ETF following rejections from the U.S. Securities and Exchange Commission (SEC). As Cointelegraph reported, an approval from the SEC could reset GBTC’s discount to zero.

Nonetheless, as of Jan. 23, GBTC’s share weight in Ark’s portfolio has actually increased to 0.52% compared to its November 2022 low of 0.35%.

*GBTC shares’ weight (purple) across Ark ETFs. Source: Cathiesark.com*

Ark adds $17.6M in Coinbase stock

Ark’s selling of GBTC shares in the past weeks coincided with accumulation of Coinbase (COIN) shares.

Cathie Wood’s ARKW added 320,000 COIN shares (about $17.6 million) in 2023. As a result, the Coinbase stock’s weight in Ark Invest’s combined ETF portfolios has reached nearly 3.62% on Jan. 23 versus 2.73% at the start of this year.

*COIN shares (purple) in Ark’s ETF versus its price (orange). Source: Cathiesark.com*

Overall, Ark appears to be only increasing its exposure to the Bitcoin market, particularly as Wood is well known for her consistent $1 million BTC price prediction by 2030.

Can the GBTC price rally continue?

Similarly, Greenery Financial, an investment strategy firm, confirmed that it had shifted its GBTC exposure to ProShares Bitcoin Strategy ETF (BITO) due to the above-mentioned risks around DCG.

“Any bad news, be it Cathie Wood selling out of GBTC or DCG going bankrupt, will spark the same fears and doubt – of uncertainty – and likely cause an expansion of the discount once again,” the firm warned in its SeekingAlpha note, saying:

“With Bitcoin having no real catalyst in the short term and plenty of potential downside catalysts, there are plenty of risks here from the NAV side as well.”

Nonetheless Bitcoin and GBTC prices may keep on rallying through Q1 from a technical perspective.

On the daily chart, GBTC has reclaimed its 50-day exponential moving average (50-day EMA; the red wave in the chart below) near $9.68 as support.

Upward momentum could see it test the 200-day EMA (the blue wave) near $15 if it continues to float above the 50-day EMA wave, similar to what happened in March-April 2022.

The technical upside target falls in line with what Pat Tschosik, senior portfolio strategist at Ned Davis Research, predicts about the Grayscale Bitcoin Trust.

He argues that GBTC price could not only double by mid-2023, but also narrow the extant discount gap with Bitcoin’s spot price.

“We recommend GBTC…as a way to play Bitcoin because it has a ‘potential NAV kicker rebate,’ which not only means it would go up if Bitcoin goes up, but also closing its current large 35% rebate on NAV,” Ned Davis Research said in a note to clients.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

‘Wall of worry’ led to digital wallets, blockchain tech ignored: Cathie Wood

Market uncertainty calls for an opportunity to take advantage of disruptive innovation, which has historically “gained share during turbulent times,” said the ARK Invest CEO.

ARK Invest CEO Cathie Wood believes that digital wallets and blockchain tech were among the “game-changing innovations” that the equity markets largely ignored in 2022.

In a Jan. 12 blog post on the ARK Invest website, Wood suggested that the equity market faced a “wall of worry” in 2022, caused by fears of entrenched inflation and higher interest rates and largely ignored some innovative technologies.

Wood highlighted that digital wallets are “replacing cash and credit cards,” noting that they overtook cash as the top transaction method for offline commerce in 2020.

Further arguing that digital wallets should not be overlooked, Wood noted that they also accounted for approximately 50% of global online commerce in 2021.

After the most difficult year ever in the equity market for innovation-based strategies, we just sent our clients this letter highlighting the breakthrough technologies that already are transforming the world. In our view, innovation solves problems! https://t.co/YdBiIZhY0D

— Cathie Wood (@CathieDWood) January 13, 2023

Wood suggested that the recent collapse of crypto exchange FTX hasn’t affected the larger mission of what public blockchains were intended for. She noted:

“Public Blockchains like Bitcoin and Ethereum have not skipped a beat in processing transactions.”

Wood highlighted how the FTX collapse educated crypto investors to be more diligent with where they store their crypto assets, saying that the share of trading volume on decentralized exchanges, which allow for trading without a central intermediary, rose 37%, jumping from 8.35% to 11.4%.

Wood said she has never, in her “30 years working in portfolio management,” experienced such unstable market conditions, saying she has never seen “markets this dislocated.”

The CEO suggested that the economy is facing a challenging situation, with a decrease in money supply, a decline in commodity prices and the “unwinding” of bloated inventories, which indicate a slowdown in inflation and possibly even deflation.

Wood noted in the report that the fear is high in investors stating that investors are holding “high levels” of cash not seen since the 9/11 crisis in 2001.

Other “game-changing” innovations that Wood believed the equity market “largely ignored” in 2022 included artificial intelligence, electric vehicles, space exploration and 3D printing.

She believes that despite the uncertainty in the market, disruptive innovation technologies that “solve problems” have historically “gained share during turbulent times.”

Bitcoin clings to $17K as ARK flags ‘historically significant capitulation’

BTC price action is suffering from FTX, but decentralized blockchains are “as strong as ever,” says ARK Invest.

Bitcoin (BTC) and decentralized blockchains are “as strong as ever” in the wake of the FTX meltdown, ARK Invest says.

In the latest edition of its monthly newsletter, “The Bitcoin Monthly,” the investment giant came out firmly bullish on BTC.

ARK: FTX scandal may be “most damaging event” ever

With BTC price volatility ebbing into December, the industry is still reeling from ongoing FTX contagion.

As lawmakers only begin to get to grips with the events, when it comes to Bitcoin, ARK is doubling down on its conviction — and setting it firmly apart from centralized alternatives.

“The fall of FTX could be the most damaging event in crypto history,” one of the latest report’s “key takeaways” states.

While acknowledging that even Digital Currency Group (DCG) — one of whose products, the Grayscale Bitcoin Trust (GBTC), it recently bought — “faces considerable pressure” as part of the fallout, ARK delivered a key critique of what it called “centralized intermediaries.”

“ARK’s conviction in decentralized and transparent public blockchains is as strong as ever,” it confirmed.

“The FTX and other cases like Celsius and Alameda suggest that decentralization and transparency are paramount as antidotes to the gross mismanagement that can be associated with centralized intermediaries, especially fraudulent ones.”

As such, despite being bearish on some on-chain metrics, there was reason to keep the faith on Bitcoin.

Examples to bear in mind included the resilience of long-term investors, a group refusing to give into the temptation to sell despite recent BTC price declines.

“We believe this datapoint indicates holders’ long-term focus and high conviction, despite recent events. Today, long-term-holder supply is 72% of bitcoin’s total circulating supply,” the report continued.

*Bitcoin long-term holder (LTH) supply chart (screenshot). Source: ARK Invest*

“A historically significant capitulation is underway”

Bitcoin’s realized profit/ loss ratio also came in for attention, this now hitting all-time lows, as Cointelegraph reported.

Profit/ loss ratio refers to BTC transacted on-chain in profit and loss, respectively.

“Bitcoin found meaningful bottoms in every previous instance—2011, 2015, and 2019—in which that metric reached

“November’s realized profit/loss data inform our view that a historically significant capitulation is underway.”

*Bitcoin realized profit/ loss ratio chart (screenshot). Source: ARK Invest*

BTC/USD traded around the $17,000 mark at the Dec. 6 Wall Street open, data from Cointelegraph Markets Pro and TradingView showed, still attempting to flip the level to firm support after days of indecisiveness.

ARK’s CEO, Cathie Wood, earlier this year doubled down on a prediction that Bitcoin would hit $1 million by 2030.

*BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView*

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Bitcoin is now less volatile than S&P 500 and Nasdaq

A rare 2% daily loss for the U.S. dollar index gives Bitcoin and stocks an opportunity for gains, but BTC still undercuts the rest on volatility.

Bitcoin (BTC) held gains above $21,000 into Nov. 5 as the United States dollar posted a rare major daily decline.

*BTC/USD 1-day candle chart (Bitstamp). Source: TradingView*

Dollar dives 2% as risk assets recover

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD building on prior strength to hit highs of $21,473 on Bitstamp — a new seven-week high.

The pair had benefited from the latest United States economic data, while the USD conversely suffered. The U.S. dollar index (DXY) lost 2% in a day for the first time in years, helping fuel a risk asset rally.

*U.S. dollar index (DXY) 1-day candle chart. Source: TradingView*

“And, just like that, Bitcoin took out all the highs, volume is increasing and it’s back above $21K,” Michaël van de Poppe, CEO and founder of trading firm Eight, commented:

“I’m assuming we’ll continue towards $22.5K from here, but have a slight correction before continuing (as we took out all the liquidity). Buy the dip season.”

*BTC/USD annotated chart. Source: Michaël van de Poppe/ Twitter*

BTC had previously become notorious for its lack of volatility and narrow trading range, helping it beat even stocks for the first time ever.

“For the first time in history, bitcoin is less volatile than both the S&P 500 and Nasdaq,” Yassine Elmandjra, a crypto analyst at ARK Invest, noted, linking to the firm’s latest report, “The Bitcoin Monthly:”

“The last time volatility was this low, bitcoin rose from $9,000 to $60,000 in less than a year.”

*Bitcoin vs. S&P500 vs. Nasdaq Composite Index volatility chart. Source: Yassine Elmandjra/ Twitter*

Tyler Winklevoss, co-founder of trading platform Gemini, meanwhile, revealed a belief that crypto markets would continue to act as a leading indicator of overall market trajectory, as in 2021.

“Crypto was the first asset class to crash; it will be the first to rise again,” he summarized.

Bitcoin more stable than major fiat currencies

Continuing on the theme of low volatility, ARK’s report, led by well-known analyst David Puell, showed that it was not just stocks being undercut by Bitcoin’s stability.

Related: Why is the crypto market up today?

“Bitcoin’s relative volatility has not only decreased relative to equities, but also to major currency pairs. As macro uncertainty and USD strength have increased, foreign currency pairs have been impacted negatively while bitcoin has been relatively stable,” The Bitcoin Monthly stated:

“Bitcoin’s 30-day realized volatility is nearly equivalent to that of the GBP and EUR for the first time since October 2016. Although Fed hawkishness could continue its volatility, bitcoin’s strength relative to foreign currencies is an encouraging sign.”

*BTC/USD volatility vs. EUR, GBP chart (screenshot). Source: ARK Invest*

As Cointelegraph reported, another popular analyst, LookIntoBitcoin creator Philip Swift, has forecast the end of the current bear market by the start of 2023.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.