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The Bitcoin price has dropped 2% in the last 24 hours after Cathie Wood’s ARK Invest increased its exposure to crypto-linked equities, adding shares of Coinbase, Circle, and Bullish amid sector-wide price declines.
According to ARK’s Friday trade disclosures, the ARK Innovation ETF (ARKK) purchased 38,854 Coinbase shares, while the ARK Fintech Innovation ETF (ARKF) added 3,325 more, totaling $9.4 million. Circle Internet Group saw a combined 129,446 shares bought across ARKK and ARKF, worth around $9.2 million, and ARK also invested $3.2 million in 88,533 Bullish shares.
Coinbase shares closed down 2.77% at $216.95, Circle fell slightly by 0.03%, and Bullish declined 2% to $35.75. Alongside these crypto buys, ARK trimmed positions elsewhere, including selling 12,400 Meta Platforms shares valued at $8.03 million. ARK’s increased exposure comes despite crypto-linked equities underperforming in recent quarters.
Breaking 🚨: ARK Invest is planning two crypto index ETFs, one with Bitcoin and major altcoins, and one without Bitcoin.
The ETFs will be listed on NYSE Arca, as Cathie Wood’s firm also invests in companies like Netflix, Tempus AI, and WeRide.
The company remains bullish on… pic.twitter.com/Cf4UeeJqYP— CFN (@cryptoflairnews) January 24, 2026
The downturn in digital assets during late 2025 weighed heavily on ARK ETFs, with Coinbase emerging as the largest drag on the ARK Next Generation Internet ETF (ARKW), ARKF, and ARKK. Coinbase shares fell more sharply than Bitcoin and Ether as spot trading volumes on centralized exchanges dropped 9% quarter-on-quarter following October’s liquidation event.
ARK Invest Stays Bullish on Crypto
Roblox was the second-largest detractor, despite posting strong third-quarter bookings, as the company warned of declining 2026 operating margins and faced added pressure from Russia’s platform ban. Despite these setbacks, ARK remains bullish on crypto’s long-term potential. In its Big Ideas 2026 report, the firm projects the digital asset market could reach $28 trillion by 2030, driven largely by Bitcoin adoption and price growth.
Bitcoin is expected to account for roughly 70% of the total market value, with about 20.5 million coins mined by 2030. If this forecast holds, ARK estimates Bitcoin could reach $950,000 to $1 million, fueled by rising institutional participation, corporate holdings, and the growth of Bitcoin ETFs.
ARK’s recent purchases underscore its long-term confidence in crypto, showing the firm is willing to increase exposure even amid short-term market volatility and sector-wide declines.
Bitcoin Holds Critical $87K Support, Signs of Reversal Emerging
The Bitcoin trading pair shows the market testing a critical juncture at the major support zone near $87,000. After a prolonged downtrend starting from mid-2025, BTC appears to be forming a potential bullish reversal, as highlighted by the chart.
Earlier in the year, Bitcoin experienced a strong bullish channel in April, peaking with a double top around the $120,000–$122,000 level. The double top marked a significant resistance, triggering a sharp correction that led BTC into a consolidation phase with multiple lower highs through mid to late 2025.
Currently, the price action is consolidating above the major support zone, which has historically acted as a strong floor. This area aligns with prior rejection points, suggesting buyers are defending it.
The Relative Strength Index (RSI) reading of around 39 indicates that BTC is in or approaching oversold territory, further supporting the likelihood of a bullish reversal. If the support holds, the chart indicates a potential upside target toward the $105,000–$110,000 region, near previous resistance levels, marking a possible recovery of over 20% from current levels.
The broader trend shows caution, as BTC remains below the long-term resistance at roughly $115,000–$120,000. A sustained breakout above this resistance would be necessary to confirm a return to the previous bullish momentum. For now, traders should watch for confirmation of the reversal through a strong daily close above the current consolidation zone, combined with improving RSI and volume signals. Bitcoin is at a critical pivot, with a potential rebound from $87,000 signaling the start of a new upward leg, though it must overcome key resistance zones to sustain a long-term bullish trend.
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