The chief executive of crypto and tech investment firm Ark Invest, Cathie Wood, has predicted that crypto assets will experience a resurgence in the coming year as inflation falls and the Federal Reserve pivots.

In a recent video blog, Wood discussed the macroeconomic outlook and noted that there are various signals pointing to lower inflation, which suggests that the Fed should pivot soon.

This would be beneficial for risk-on assets such as crypto as the macroeconomic outlook improves and financial belts are loosened.

Wood also predicted that inflation could fall below the 2% Fed target level, even into negative territory, due to the decreasing money supply. The market is waiting for a signal from the Federal Reserve, she said, adding that Ark Invest believes this signal will come in the first half of 2023.

Ark Invest has a diversified portfolio of investments, including a crypto asset fund, blockchain venture investments, a disruptive innovation fund, and six active technology and fintech-based exchange-traded funds (ETFs).

In addition to Wood’s predictions, Ark’s Chief Futurist Brett Winton also spoke about the potential for artificial intelligence (AI) to accelerate in 2023 and for crypto assets to experience a big turnaround this year.

He stated that public blockchains, cryptocurrencies, and crypto assets, which are currently going through a difficult period, will become even more differentiated for their scarcity in an age of abundance.

He also added that when the Fed changes its stance, the opportunity for expansion and value realization within the venture and public market space is even larger.

In conclusion, Wood stated that these technological innovations are deflationary and will cause a boom in the products and services associated with this innovation.

With the potential for a Fed pivot and decreasing inflation, it seems that the crypto market may be on the verge of a resurgence.