Crypto Crash Continues And ARK Invests in Ethereum

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The route that the crypto market finds itself in is continuing today, with the major cryptocurrencies all down double digits. By now, Bitcoin is down almost 40% since its all time high of $65k, reached about a month ago.

The market sentiment is that of extreme fear as the cryptosphere starts repeating sounds it last made in March of 2020 (when Bitcoin fell some 50% in a day). There is at least a sliver of good news as it appears Cathie Wood’s investment fund has now bought into Ethereum as well (via Grayscale).

With that, more institutional investment can be seen entering the market which should be interpreted as a sign of trust in the markets.

Bitcoin nears $40k

As the best known cryptocurrency plunged towards $40k this morning, the needle of the Fear and Greed index dropped to a level of 23, meaning that investors are overcome with fear that the fall could accelerate as we dive deeper into this correction.

2/ Now look at the exact chart again. It’s not today but July 2017. After a crazy alt-season in 2017, #Bitcoin fell almost 38%, from $3000 to under $2000. A similar drop from 65k would get you to about $41k.

These drops happen in bull markets. Your conviction WILL be tested. pic.twitter.com/q1QXqoyTMT

— Vijay Boyapati (@real_vijay) May 19, 2021

Arcane, a Norwegian market analyst firm, stated:

The past week has been filled with fear, uncertainty and doubt, and the bitcoin price has crashed down. In the past, an extremely fearful market like this has historically presented solid buying opportunities during bull cycles.

ARK Invests in Ethereum

Star stock picker Cathie Wood has now bought into Ether as well. When the SEC released her ARK investment fund’s report it showed that she had chosen to participate into Grayscale’s Ether fund for a value of some $20 million.

ARK Investment has bought 639,069 shares of the Grayscale Ethereum Trust. pic.twitter.com/ofXD5F7QpA

— Documenting Ethereum 🧾 (@DocumentEther) May 18, 2021

Analysts welcomed the news, stating it proved that institutions on Wall Street were eager to get into crypto this year.

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