Chief executive officer of ARK Invest, a cryptocurrency and technology investment company, predicts that crypto assets will experience a significant increase in value this year due to a decrease in inflation and a shift by the Fed in monetary policy. Cathie Wood, CEO and Chief Investment Officer of ARK Invest provided a review of the macroeconomic outlook in a video blog post published by the firm on January 23, 2017.
She stated that there were many signs that pointed to decreased inflation. This “suggests that Fed should pivot quickly.” She was referring here to the Fed’s recent pivot.
The macroeconomic outlook is improving and financial constraints are lessened, which would be good news for risky assets like cryptocurrency.
She stated that inflation will be lower than the Fed’s goal of 2%.
Wood did predict that inflation would fall to below this level or even into negative territory because of the declining money supply. This is because the money supply has been decreasing.
She stated that the market is currently awaiting a signal by the Federal Reserve and that she believed it would happen in the first half 2023.
She indicated that portfolios managed through ARK Invest would perform well in the event that forecasted interest rates fall.
ARK is not only a cryptocurrency asset fund. It also operates a blockchain venture fund, a disruptive fund, and six active exchange traded funds that are focused on technology and fintech.
ARK Chief Futurist Brett Winton was addressing the crowd about artificial intelligence (AI) and said that there will be rapid advancements in this area in 2023.
He also predicted that crypto assets would see significant changes for the better in 2018. “Public blockchains, crypto assets and cryptocurrencies are all going through a difficult time right now. They are likely to be even more distinguished because of their scarcity during an era where there is plenty.
He continued by saying that when the macro environment changes and the Federal Reserve “changes spots”, there is greater potential for “growth” and “value realisation within the venture and public markets area.
Wood concluded that technological advances would lead to deflation. This would then “create a boom for the goods and services associated with this innovation.”
ARK Invest made a recent profit on a portion it held in Grayscale Bitcoin Trust (GBTC). Then it loaded up 320,000 Coinbase (COIN) shares, which are now worth around $17.6 millions.