Cathie Wood, head of the crypto and innovative tech investment firm, is confident that inflation will fall and that the Fed will pivot in 2023.
The CEO of the crypto and technology investment company ARK Invest believes that crypto assets will see a big change this year as inflation falls and the Fed pivots.
In the company’s video blog on January 23rd, Cathie Wood, CEO and Chief Investment Officer of ARK Invest started with a summary of macroeconomic concepts. He said there are all kinds of signs pointing to a lower rate, which “suggests that the Fed may start moving faster.”
This will benefit risky assets like crypto as the big idea is getting better and the money supply is loosening. He added that the company believes that inflation will decrease to the level of 2% of the Fed. However, Wood predicted that inflation may fall below this level and even into negative territory because the currency has fallen.
The market is waiting for a signal from the Federal Reserve, he said, adding that “we think that will happen in the first half of 2023.” He said the ARK Invest portfolio should do well if interest rates are about to fall below expectations.
ARK consists of cryptocurrencies, blockchain investments, disruptive innovation funds, and six exchange-traded funds (ETFs) working in technology and fintech. Meanwhile, ARK’s Chief Futurist Brett Winton talked about Artificial Intelligence (AI), stating that progress will accelerate in 2023. He also predicted that crypto assets will see a big change this year.
“Public blockchains, cryptocurrencies, and crypto-assets that advance in times of crisis will be more distinguished for their scarcity in times of crisis.”
He added that when there are changes in the macroeconomic environment and the Fed “changes its position”, the opportunity “for the expansion and realization of benefits in the capital space and the public market is even greater”.
Wood concluded that these technological innovations are deflationary, which “will lead to an increase in products and services related to this innovation.”
ARK Invest’s recent activity is to invest some of its assets Grayscale Bitcoin Trust (GBTC) and carry 320,000 Coinbase (COIN) shares, worth around $17.6 million.
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