On Monday, the crypto market recorded massive liquidations reaching more than $1.2 trillion within a day. In this article, we will explore how Ark Invest purchased crypto stocks despite the massive liquidations and its significance.
$1.2 Trillion Crypto Liquidations
The cryptocurrency market has recently experienced significant turbulence, resulting in a massive $1.2 trillion in liquidations. This dramatic downturn saw the market undergo one of its most volatile periods in 2024. In just a matter of 24 hours, over $1 trillion was liquidated, affecting a vast number of traders and investors. The impact was felt across the board, with Bitcoin, the market leader, witnessing liquidations exceeding $300 million. Ethereum followed closely, with more than $250 million liquidated. Major cryptocurrencies like Solana, Cardano, and Ripple were not spared, contributing substantially to the overall liquidation figures.
Binance and OKX Leads Crypto Liquidations Charts
The liquidation frenzy peaked when major crypto exchanges reported unprecedented sell-offs, with Binance alone accounting for over $400 million in liquidations. According to Coinglass, the largest crypto exchange has around $342.6 million longs and $69.9 million worth of shorts in the liquidations. Moreover, the OKX crypto exchange came second with $319.4 million in liquidations. It has about $261 million longs and $57.9 million short trading positions.
This massive sell-off not only wiped out leveraged positions but also triggered a lot of margin calls, making the downtrend get worse. The market’s total capitalization shrank from $2.3 trillion to just under $2 trillion, a good reminder of the inherent volatility and risks associated with cryptocurrency investments.
Ark Invest Purchase $29 Million in Shares of Robinhood and Coinbase
Amidst this turbulent sell-off in the market, Ark Invest, led by the renowned investor Cathie Wood, has made a bold move by purchasing $29 million worth of shares in Robinhood and Coinbase. This strategic acquisition comes despite both platforms experiencing significant downturns in their stock prices.
Robinhood, known for its user-friendly trading platform, saw its stock price drop to new lows, prompting Ark Invest to acquire approximately $11 million worth of shares. This purchase underscores Ark’s confidence in Robinhood’s long-term growth potential, despite the short-term market setbacks. The investment firm also purchased $17.8 million worth of Coinbase stock. Moreover, it is important to note that this is its first buy since June 6, 2023, when it invested $21.6 million.
Other Shares Purchased by Ark Invest
The Coinbase and Robinhood stocks weren’t the only shares purchased by Ark Invest. They bought around 12,426 shares of Tesla (TSLA) valued at $2.5 million and 176,963 shares of Amazon (AMZN) worth $28.5 million after the massive dip on Monday. Furthermore, they also bought 12,545 shares of Meta (META) at $5.96 million, 52,239 shares of Palantir (PLTR) for $1.26 million, and 25,316 shares of AMD (AMD) at $3.4 million.
Conclusion
The recent $1.2 trillion crypto liquidation event underscores the volatile nature of the cryptocurrency market, highlighting the risks and opportunities for investors. Amidst this turbulence, Ark Invest’s substantial investments in Robinhood and Coinbase show a strategic bet on the resilience and long-term potential of these companies. Nevertheless, crypto investors will be hoping that the market returns to bullish trends.
Cover Image from Microsoft Designer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
