ARK Invest CEO Cathie Wood forecasts the liquidity squeeze hitting crypto and AI markets will reverse within weeks, driven by three Federal Reserve policy shifts expected before year-end.

Her firm continues aggressively buying crypto equities during the downturn, deploying over $93 million in a single day this week across beaten-down digital asset stocks.

Wood’s prediction comes as Bitcoin trades below $88,000 after falling from its October peak of $126,000, while crypto-linked equities are facing their sharpest monthly declines since early 2024.

Speaking during , she identified three temporary liquidity constraints she expects to ease rapidly through Federal Reserve action and reopened government spending.

In this recent webinar, I…