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Investing.com – In a video posted on Monday, Ark Invest CEO Cathie Wood said the year 2023 could see a massive turnaround for the and other cryptocurrencies, in an environment of lower inflation and against the pivot of the Fed.
The managing director of crypto and technology investment firm Ark Invest believes crypto assets will see a huge turnaround this year, with inflation falling and the Fed pivoting.
In particular, Cathie Wood said that all sorts of signals point to lower inflation, which “suggests that the Fed may soon pivot” according to her, which would favor cryptocurrencies and risky assets in general.
Wood has even said that she thinks inflation will come down to the Fed’s 2% target level, or even fall below that level and even into negative territory, as the money supply is falling.
She also felt that many of the technological advances to come will be deflationary, but in a good way.
“This will fuel the outlook for lower inflation and cause a boom in products and services associated with this innovation,” she said, noting that “inflation has been a short-term deterrent to the performance of innovation-based strategies.
In this context, she felt that the Fed could more clearly signal a pivot “during the first half of the year”.
For his part, Ark’s chief futurologist, Brett Winton, who also participated in the video, also shared his bullish view, believing that “public blockchains, cryptocurrencies and crypto-assets that are going through a period bumpy right now will become even more differentiated for their scarcity in an era of plenty.”
Wood concluded that these technological innovations are deflationary, which “will cause a boom in the products and services associated with this innovation.”