The crypto and cutting-edge technology investment firm believes that inflation will fall and the Fed will pivot in 2023.
The CEO of crypto and digital investment firm Ark Invest believes crypto assets will experience a significant increase in value this year as inflation decreases and the Fed pivots.
Cathie Wood, CEO, and CIO of Ark Invest began her business video blog on January 23 with a look at the macroeconomic forecast. She stated that there are numerous indicators pointing to reduced inflation, which “suggests that the Fed should pivot soon.”
As the macroeconomic outlook improves and financial belts loosen, risk-on assets such as cryptocurrency will benefit.
She went on to say that the firm anticipates inflation would fall to the 2% Fed target level. However, because the money supply has been shrinking, Wood warned that inflation may go below this threshold, perhaps into negative territory.
The market is waiting for a signal from the Federal Reserve, which she believes will arrive in the first half of 2023. She believes Ark Invest portfolios will fare well if interest rates fall below expectations.
Ark has a cryptocurrency asset fund, a blockchain venture investment fund, a disruptive innovation fund, and six active technology and fintech exchange-traded funds (ETFs).
Meanwhile, Ark’s Chief Futurist Brett Winton discussed artificial intelligence (AI), predicting that progress will pick up in 2023. He also projected that crypto assets would witness a significant increase in value this year.
“Public blockchains, cryptocurrencies, and crypto assets which are going through a bumpy period right now are going to become even more differentiated for their scarcity in an age of abundance.”
He went on to say that when the macro climate changes and the Fed “changes its spots,” the possibility for “growth and value realization within the venture and public market space becomes much greater.”
Wood stated that these technical improvements will generate a “boom in the products and services linked with this breakthrough.”
Ark Invest recently sold some of its Grayscale Bitcoin Trust (GBTC) assets and purchased 320,000 Coinbase (COIN) shares valued at approximately $17.6 million.