The chief executive of cryptocurrency and technology investment business ARK Invest predicts that this year will see a significant change in the value of crypto assets due to a decrease in inflation and a change in monetary policy by the Federal Reserve. Cathie Wood, CEO of ARK Invest and chief investment officer, provided an assessment of the macroeconomic forecast in a video blog post for the firm that was published on January 23.

He said there were several signs pointing to a reduction in inflation, which “suggests that the Fed should turn around soon.” He was referring to the recent turn the Fed made.

As the macroeconomic outlook improves and financial restrictions ease, this would be positive for risk assets like cryptocurrencies.

He also said the company anticipates inflation to decline to the 2% target level set by the Fed.

However, Wood anticipated that inflation could fall below this level and perhaps into negative territory as the money supply has been declining. This is due to the fact that the money supply has been falling.

He said the market is now waiting for a signal from the Federal Reserve, adding that “we expect it to happen in the first half of 2023.”

He said the portfolios that ARK Invest manages should perform quite admirably in case interest rates fall below forecasts.

ARK operates not only a cryptocurrency asset fund, but also a blockchain venture fund, a disruptive innovation fund, and six active exchange-traded funds that focus on technology and fintech (ETFs).

While this was going on, ARK’s futurist chief Brett Winton was discussing artificial intelligence (AI) and said that advances in this field will accelerate in 2023.

Furthermore, he predicted that crypto assets will see a significant change for the better this year. “Blockchains, cryptocurrencies, and public crypto assets, all of which are going through turbulent times right now, are likely to be further distinguished by their scarcity in an era of plenty.”

He went on to say that whenever there is a change in the macro environment and the Federal Reserve “changes places,” there is a greater possibility of “growth and value realization within the public market and risk area.”

Wood concluded that recent technical advances will lead to deflation, which in turn “would create a boom in goods and services related to this innovation.”

The most recent action taken by ARK Invest was to take a profit on a portion of its holdings in Grayscale Bitcoin Trust (GBTC) and then load 320,000 Coinbase (COIN) shares, which are now valued at around $17.6 million.