Cathie Wood Sees Recession Risks, Predicts Policy Shift

ARK Invest’s Cathie Wood argues that economic trouble is brewing, even if the U.S. government doesn’t see it yet.

Speaking at the Digital Asset Summit, she warned that slowing money circulation signals a possible recession—something she believes policymakers are underestimating.

If economic growth stalls, Wood expects the Federal Reserve and the White House to shift gears, potentially cutting taxes and easing monetary policy to counteract the downturn. Market watchers are already betting on an end to the Fed’s tightening measures, with rate cuts anticipated in the second half of the year.

Despite short-term volatility, Wood remains confident in the long-term potential of crypto. ARK’s Bitcoin ETF, launched in early 2024, has amassed billions in assets, and institutional interest is growing. She sees evolving regulations as a turning point, pushing more financial firms to acknowledge crypto as a legitimate asset class.

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She also emphasized that ARK’s investment strategy extends beyond Bitcoin, with exposure to Ethereum, Solana, and other digital assets. According to Wood, innovation will be the driving force in the next financial cycle, and institutions that embrace crypto early could gain a significant advantage.

Alexander Stefanov