The CEO of crypto and technology investment firm ARK Invest believes that cryptocurrencies will see a huge turnaround this yearfollowing the drop in inflation and the Fed’s change of direction.
In a video blog posted on Jan. 23, ARK Invest CEO and Chief Investment Officer Cathie Wood said various signs point to an imminent reduction in inflation. This would be beneficial for risk assets such as cryptocurrencies as the macroeconomic outlook would improve and financial restrictions would ease.
The company believes that inflation will fall to 2%i.e. the target set by the Fed. Wood predicted that inflation could also 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, which in its opinion “will arrive in the first half of 2023.He added that ARK’s investment portfolios should do very well should interest rates fall below expectations.
ARK owns a fund focused on crypto-assets, investments in blockchain companies, a fund on disruptive innovations, and six ETFs based on technology and fintech.
Also Read: Cathie Wood Confirms $1 Million BTC Forecast By 2030, But Traders Awaiting $38,000 Retest In Short-Term
In the same video, Brett Winton, Chief Futurist of ARK, instead discussed the artificial intelligencenoting that progress in this area could accelerate in 2023. He too predicted that digital assets will see a huge turnaround this year:
“Public blockchains, cryptocurrencies and digital assets, which are currently going through a turbulent time, will stand out as scarcity in an era of plenty.”
