NEW YORK, Feb 3, 2026, 14:05 (EST)
- As digital assets remained volatile, Ark funds increased their holdings in crypto-linked stocks.
- Bitcoin surged past $79,000 but slipped lower in afternoon trading.
- Some market watchers are once again suggesting a slide down to $50,000.
Cathie Wood’s Ark Invest added shares of Circle Internet Group, Bullish, and BitMine on Monday, despite bitcoin’s sharp swings and its steady hover around $73,000 on Tuesday. Trade disclosures gathered by Cathie’s Ark also revealed purchases in Coinbase and Block.
The buying counts since the same selloff dragging bitcoin down has slammed stocks linked to trading, custody, and stablecoins — the typical proxies investors turn to when they avoid holding tokens outright. Circle’s shares dropped 7.9% Monday, Coinbase dipped 3.5%, according to Bitget.
Bearish voices are growing louder in the market. Mike McGlone of Bloomberg Intelligence warned that bitcoin might sink to $50,000—a drop that would mark a new downward move from where prices stand now.
Bitcoin.com flagged the same tension: a swift bounce toward $79,000 but cautioned the drop might stretch further, putting $50,000 back in focus for traders.
Despite the recent slide in shares, brokers remain active on Circle. Morgan Stanley kicked off coverage with an Equal-Weight rating, a report from Nasdaq citing Fintel revealed.
Wood insists crypto still has a place in a diversified portfolio, even as the charts look shaky. On X, quoted by Finviz, she argued that bitcoin and other leading tokens “could be good diversifiers,” highlighting their low correlation with gold since 2020. The same piece referenced crypto analyst Benjamin Cowen, who pushed back, cautioning that parabolic rallies in precious metals have often led to “deep corrections” in risk assets. Finviz
Glassnode’s earlier on-chain analysis identified $80,700 to $83,400 as a critical support zone, warning that “conviction is required” to prevent a sharper decline, while also observing that options traders were shifting toward a more defensive stance. Bitcoin has now slipped below that range, highlighting how quickly “support” can become just another headline. Glassnode Insights
But the risk isn’t just theoretical. Investor Michael Burry warned that “sickening scenarios have now come within reach” if bitcoin continues its decline, Business Insider reports. He detailed potential knock-on impacts, from pressure on Strategy to miner collapses if bitcoin hits $50,000. Business Insider
Ark’s latest purchases stand as just one data point—not a clear reversal. Circle, the issuer of USDC, a stablecoin pegged to the U.S. dollar, operates in a crowded space alongside competitors like Tether. Its stock tends to track broader crypto trends as much as any company-specific developments.
The next test is straightforward: can bitcoin reclaim the $80,000 mark and sustain it long enough to revive risk appetite in crypto-linked stocks? If not, the market faces the familiar issue it’s been grappling with for weeks—fragile confidence and ample space for forced selling if prices slip.
