CEO of ARK Invest: Crypto Assets Will See a Big Turnaround
The CEO of cryptocurrency and technology investment business ARK Invest predicts that this year will see a significant change in the value of crypto assets due to a slowdown in inflation and a change in monetary policy by the Fed. ARK Invest Managing Director and Chief Investment Officer Cathie Wood provided an assessment of the macroeconomic forecast in a video blog post for the firm published on 23 January.
She said there were several signs pointing to reduced inflation, which “suggests that the Fed should pivot shortly.” She was referring to the recent pivot that the Fed made.
As the macroeconomic outlook improves and financial constraints ease, this will be positive for risky assets such as cryptocurrency.
She also said the company expects inflation to come down to the 2% target level set by the Fed.
However, Wood predicted that inflation may go below this level and perhaps into negative territory since the money supply has decreased. This is because the money supply has been falling.
She said that the market is now waiting for a signal from the Federal Reserve, and she went on to say that “we expect that to happen in the first half of 2023”.
She said that the portfolios that ARK Invest manages should perform quite admirably should interest rates fall below forecasts.
ARK operates not only a cryptocurrency capital fund, but also a blockchain investment fund, a disruptive innovation fund and six active exchange-traded funds centered on technology and fintech (ETFs).
While this was going on, ARK Chief Futurist Brett Winton discussed artificial intelligence (AI), and he said that progress in this field will accelerate in 2023.
In addition, he predicted that crypto assets will see a significant change for the better this year. “Public blockchains, cryptocurrencies and cryptoassets, all of which are going through a turbulent moment right now, are likely to become even more distinguished due to their scarcity in a time of abundance.”
He went on to say that when there is a shift in the macro environment and the Federal Reserve “switches places”, there is a greater opportunity for “growth and value realization within the venture and public markets space”.
Wood concluded that the latest technological advances will lead to deflation, which in turn will “create a boom in the goods and services associated with this innovation.”
The latest action taken by ARK Invest was to realize a profit on part of its holdings in Grayscale Bitcoin Trust (GBTC) and then offload 320,000 shares in Coinbase (COIN), which is now valued at around $17.6 million .
