Cathie Wood, says inflation will go down in 2023. She believes crypto will rebound and the Fed will pivot. For this, she offered many explanations. This CEO of ARK Invest, however, is not the only one to think that the crypto sector will experience a turnaround this year.
A drop in inflation that benefits crypto
Cathie Wood shared analysis in a company video blog on January 23. Starting with an overview of the macroeconomic outlook, she noted signals for lower inflation. This notably suggests that the Fed should pivot soon, she said. According to this CEO of ARk Invest, all risky assets such as crypto could benefit because the macroeconomic outlook is improving. Financial belts are also loosening.
The firm estimates that inflation will come down to the target level of 2% of the Fed, she added. Nevertheless, she predicts that inflation could still fall below this level, even in an unfavorable situation, because the money supply has shrunk. Stating that the market is waiting for a signal from the Fed, they believe it will come in the first half of 2023.
Technological progress will change the situation
Meanwhile, Brett Winton, Chief Futurist of ARK Invest spoke about artificial intelligence (AI). According to him, progress will accelerate in 2023 emphasizing that cryptos will see a big turnaround. Indeed, public blockchains and crypto are going through a period fraught with pitfalls. They will then become even more differentiated for their scarcity in an era of plenty, he explained.
He added that the opportunity for expansion within the corporate and public market space will be greater when a turning point in the macro environment occurs. Added to this is a change in the tasks of the Fed. He therefore concluded that there will be a boom in the products and services associated with these technological innovations which are deflationary.
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