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The CEO of cryptocurrency and technology investment firm Ark Invest believes crypto assets will turn around significantly this year as inflation falls and the Fed turns around.
In a corporate video blog on January 23rd, Ark Invest CEO and CIO Kathy Wood started with a glimpse of the macroeconomic outlook. She said there were all sorts of signals pointing to lower inflation “suggesting that the Fed should pivot soon.”
This is beneficial for risk-on assets such as cryptocurrencies as the macroeconomic outlook improves and financial belts loosen.
He added that the firm believes inflation will fall to the Fed’s target level of 2%. But Wood predicted that inflation could fall below this level and even into negative territory as the money supply is declining.
The market is waiting for a signal from the Federal Reserve, she said, adding, “I think it will come in the first half of 2023.” She said Ark Invest’s portfolio should perform very well if interest rates are about to fall below expectations.
Ark has a crypto asset fund, a blockchain venture investment, a disruptive innovation fund, and six active technology and fintech-based exchange-traded funds (ETFs).
Meanwhile, Ark Chief Futurist Brett Winton spoke about artificial intelligence (AI), noting that progress will accelerate in 2023.
“Public blockchains, cryptocurrencies and crypto-assets, which are currently going through difficult times, will be further differentiated as they are scarce in an era of abundance.”
He added that if there were changes in the macro environment and the Fed would “change its place,” there would be “more opportunities for expansion and value realization within the venture and public market spaces.”
Related: Kathy Wood’s ARK Enters 2023 To Buy $5.7 Million Coinbase Stake
Wood concluded that these innovations were deflationary and would “cause a boom in the products and services associated with this innovation.”
Ark Invest’s latest move was to take a profit on a portion of its Grayscale Bitcoin Trust (GBTC) holdings and load 320,000 Coinbase (COIN) shares worth approximately $17.6 million.
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