A significant crypto market downturn pushed Bitcoin below $86,000. This broader market sell-off placed downward pressure on Coinbase (COIN) stock.
The market weakness drove the Crypto Fear & Greed Index into "extreme fear" territory, impacting crypto-related equities.
Responding to the declining stock price, Cathie Wood’s Ark Invest purchased additional Coinbase shares. The firm executed the $16.26 million purchase on December 15th, a move reported the following day, December 16th.
This action aligns with Ark’s typical "buy the dip" strategy, increasing holdings in crypto-linked companies during periods of market weakness.