Bitcoin shoots up while Cathie Wood doubles down on her Coinbase investment

The support line of $25k appeared much stronger than some thought it would be and after Bitcoin bounced on that price last week it started rising again. At the time of writing the world’s biggest digital coin is once again being traded for $28,800 and rose 8% in the past 24 hours.

Legendary analyst Peter Brandt believes the upwards cycle has started.

The burden of proof is increasing upon the bears in Bitcoin $BTC
The retesting of the underlying H&S has been well supported
and a possible falling wedge is being completed on daily line chart pic.twitter.com/fLnh31PkLA

— Peter Brandt (@PeterLBrandt) June 20, 2023

An old stock market adage says that if you lose, you should double your investment to halve your losses at each drop. It is known as the ‘double down’ strategy. After all, if the stock in which you invest suddenly shoots up again, it will not take long before you recover all your losses.

However, what Cathie Wood of investment fund Ark Invest does with her investment in crypto platform Coinbase defies all imagination. Cathie was one of Wall Street’s top investors during the Covid-19 pandemic, but has since suffered huge losses due to, amongst other things, her investment in Coinbase.

She remains firmly convinced that Brian Armstrong’s company can make a comeback, even though the SEC is now starting a lawsuit against the largest US crypto platform.

Cathie Wood’s Bold Bet: Doubling Down on Coinbase and Forecasting #Bitcoin’s Soaring Journey to $1 Million #BTC https://t.co/Qqg8wdsVXW pic.twitter.com/sLojz8ipWB

— ETHNews (@ETHNews_com) June 20, 2023

Fourth biggest

When Coinbase went public in April 2021, Wood was already a huge fan. As a result, she let her Ark Fund buy a lot of shares of Coinbase during the IPO, for an average price of about $200. As Coinbase reached $300 on the day of the IPO, it seemed like a genius investment.

However, in 2022, after Bitcoin bounced back from its all-time high, Coinbase shares fell rather hard. At first it traded again at $200, but by the end of the year even $50 was shown. 2023 has not been Coinbase’s best year on the stock market either.

Why Cathie Wood is bullish on Coinbase stock and believes Bitcoin will reach $1 million - https://t.co/OWNerLHJlX

— Investing.com News (@newsinvesting) June 19, 2023

With the SEC now starting a lawsuit against Coinbase, many on Wall Street wondered if Wood would finally admit she made a mistake.

However, Cathie did the old double down strategy and bought even more shares of Coinbase. Ark Invest is by now the fourth largest shareholder in Coinbase.

She is also still convinced that one day we will see one Bitcoin be worth a million dollars. Strong convictions she certainly has. Let’s hope that at least one of those two turns out correct.