Ark Invest founder Cathie Wood addressed the fears associated with the “systemic collapse” of the crypto ecosystem on Tuesday.
What Happened: Speaking at the Ark’s July market update webinar, Wood expressed concerns that the crypto market had its worst quarter since 2011 despite it being a “much more mature market than it was back then.”
Bitcoin (CRYPTO: BTC) has lost 71% since it traded at an all-time high ahead of $69,000. At press time, the leading digital asset was trading at $19,552, as per data from Benzinga Pro.
“It’s [Bitcoin] still higher than pre-COVID $7,000-$10,000 range and it’s just about at its 2017 high, so this could be some support,” said Wood.
However, she highlighted the fact that BTC is trading below its 200-week moving average as a point of concern.
“It is below its 200-week moving average which is at $22,500. So, there is some concern that that is the new resistance now.”
Ark Invest recently loaded up on crypto-related portfolio stocks like Coinbase (NASDAQ:COIN) Global Inc (NASDAQ: COIN) and Block, Inc. (NASDAQ: SQ) in its flagship fund ARK Innovation ETF (NYSE: ARKK).
Wood also said that the shakeout in crypto markets has happened “sooner and faster” than it would have in the traditional financial markets. Still, even at this stage, the fact that investors like Morgan Creek are attempting to counter FTX’s BlockFi bailout is a positive sign in her view.
“These are people who really know what’s going on in DeFi. And if they’re willing to step in here, that has increased my confidence, to some extent, that the systemic risk is diminishing here.”
See Also: Bitcoin, Ethereum, Dogecoin Plunge As Diamond Hands Feel The Pain: How Much Longer Will Crypto Slide Last?
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| Mar 2022 | Goldman Sachs (NYSE:GS) | Maintains | Buy | |
| Feb 2022 | Compass Point | Maintains | Neutral | |
| Feb 2022 | Canaccord Genuity | Maintains | Buy |
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