According to Cointelegraph
ARK Invest founder Cathie Wood believes that the White House has underestimated the recession risks posed by President Donald Trump’s tariff policies. This miscalculation will ultimately force the President and the Federal Reserve to adopt growth-friendly policies.
Wood spoke via video at the “Digital Asset Summit” held in New York on Thursday, stating that U.S. Treasury Secretary Scott Bessent is not concerned about a recession, but “we are worried about a recession,” adding, “We believe the velocity of money is sharply slowing.”
The slowdown in the velocity of money indicates a decrease in the frequency of capital turnover, which is typically associated with economic recessions as consumer and business spending and investment decline. However, Wood argues that if a recession does occur and GDP declines, “then this will give the President and the Federal Reserve more room to implement the tax cuts and monetary policies they desire.”
Focus on Long-term Investment
Regarding the recent market correction, Wood stated at the summit: “Despite the trials and tribulations we are experiencing, long-term innovation will prevail.”
When asked whether crypto assets are still a “viable investment trajectory” in the long term, Wood responded that this strategy is central to ARK Invest’s approach, saying, “The assets we hold are not limited to the top three cryptocurrencies.” She referred to Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Wood pointed out that policy changes supporting cryptocurrencies are “greenlighting” institutions, stating, “If you look at our research from as early as 2016, we wrote a report titled ‘Bitcoin: The ringing of a new asset class,’ yet many institutions dismissed it at the time. Now, institutions are studying ARK’s reports and stating that they ‘have a fiduciary responsibility to give their clients access to this new asset class.'”
