Ark Invest CEO Cathie Wood predicted a liquidity surge into Artificial Intelligence (AI) and digital assets despite growing concerns. This adds to recent bullish targets that sparked conversations from the crypto executive.
Ark Invest Back AI & Crypto Investments
Wood hinted at a reversal of the current downward liquidity trend in both markets, citing multiple factors. In a recent webinar, she stressed that several industries would benefit from AI and crypto.
Negative sentiment in the past few months tanked investment, leading to a decline in stock and crypto prices. As institutions hedged losses, outflows among retail investors intensified, further defying bullish expectations.
Before this slope, institutional capital was at an all-time high as crypto stocks and funds recorded massive inflows. Cathie Wood’s projection on the next few weeks has also gained traction with mainstream investors shaking off “bubble” fears. According to Wood, the AI story has just begun, and markets are at the cusp of immense benefits.
“We are in the first inning, and the only things to flag as a nuance are an MIT paper that says corporations aren’t seeing productivity gains because of AI. This is completely elusive, it is a bubble… and yet on the consumer side, it is flourishing, so I think that bifurcation is something that we think about a lot…You have CEOs and strategic decision makers saying, We’ve got to do this, or we’re going to lose our competitive edge out there.”
A spike in liquidity would bolster markets, especially crypto assets and AI coins that have struggled in recent weeks. Several analysts have restated the expected liquidity-driven point as a last-gasp bull effort to end the year.
Industry leaders like Cathie Wood and Brian Armstrong tipped wider adoption for crypto assets, eventually leading to larger bull cases going forward. Recently, BitMEX co-founder blamed Bitcoin’s contraction to multi-month lows on declining liquidity.
However, setting the floor at $80K, Hayes said on-chain liquidity has improved with global catalysts. Furthermore, this positive situation will sustain even if the U.S. Federal Reserve declines to lower policy rates.
In a related development, Ark Invest bought $16.7 million worth of Nvidia stock. The company also made key investments in Google, Coinbase, Circle, and other crypto stocks. Its aggressive digital asset leaning has prompted diverse trader classes to buy the dip.
Source: https://zycrypto.com/ark-invest-ramps-up-crypto-exposure-wood-sees-market-liquidity-turn-ahead/
