U.S. markets are showing signs of recovery from a steep decline following the six-week government shutdown, according to analysis by Ark Invest. Liquidity in the U.S. financial system hit a multi-year low of $5.56 trillion on October 30, according to the Federal Reserve and the U.S. Treasury.
The six-week government shutdown has prevented access to the roughly $621 billion U.S. market. About $70 billion has been injected into the economy so far since the government shutdown ended on Nov. 12. Ark Invest estimates that about $300 billion more could be injected into the market over the next five to six weeks.
Ark Invest purchases $16.5 million worth of COIN stock
Ark Investments disclosed in a filing that it has purchased $16.5 million worth of Coinbase (COIN) stock. The purchase consisted of 62,166 shares allocated to three Ark exchange-traded funds, including ARK Innovation (ARKK), ARK Next Generation Internet (ARKW), and ARK Fintech Innovation (ARKF). The acquisition was the company's largest investment since August 1st.
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— ARK Investment (@ARKInvest) November 26, 2025
COIN stock was up 4.27% at the time of the announcement. trading It was $264.97 in the last 24 hours. Shares rose 1.4% to $268.68 in after-hours trading before the market closed. Meanwhile, BTC has regained more than $90,000 in trades. At the time of issuance, the token was up 4.8%. trading At $90,650.
ARKK ETF was trading at $78.47, up 1.51%. ARKW ETF rose 1.82% to trade at $150.10, and ARKF ETF rose 2.40%. trading For $48.78. Three ETFs have been added to Coinbase as stocks and crypto benchmarks rise in response to the Fed's expected easing of interest rate cuts in December.
Meanwhile, Ark Invest CEO Cathie Wood said, I wrote Today's X says that the current liquidity squeeze that is limiting the rise in crypto and AI-related markets will reverse in the coming weeks. In April, Wood's firm predicted a 2030 Bitcoin price target of $1.5 million in a bull case and $300,000 in a bear case.
Mr. Wood asserts that bullish price of $1.5 million net remains unchanged
Ark Investment CEO Cathie Wood explained that, as expected, stablecoins are accelerating by taking over some of the role originally played by BTC, but the rise in gold prices was larger than expected. Speaking during a webinar on Monday, he pointed out that the company's net bullish price remains unchanged despite the recent correction in the crypto market and stablecoins playing a role for BTC as a safe-haven asset.
Federal Reserve officials publicly hinted in December that interest rates may be cut. For example, New York Fed President John Williams' recent remarks This was interpreted as a signal in favor of lower interest rates. Futures markets predict a 90% chance of a near-term rate cut, according to CME data.
Meanwhile, the Treasury's general account remains swollen at $892 billion compared to its usual level of about $600 billion, indicating liquidity is poised to return. The unemployment rate in September was 4.44%. ADP reported that 13,500 jobs were lost last week, retail sales slowed and the core producer price index was lower than expected. All of these statistics point to a potential rate cut in December.
The Fed is also expected to end quantitative tightening (QT), a process by which the Fed allows securities to mature without reinvestment, on Dec. 1. Ark Invest said the end of QT is likely to increase liquidity and positive sentiment for investors to resume risk exposure.
