Key Takeaways
- •Cathie Wood believes liquidity pressure in crypto and AI is nearing its end.
- •Ark Invest has increased its holdings in Coinbase, Block, Robinhood, Circle, and Bullish.
- •Wood maintains a long-term positive outlook on crypto and AI, with Bitcoin outperforming gold.
Market Outlook
Ark Invest founder Cathie Wood has stated that the liquidity pressure affecting both the crypto and AI sectors may be close to easing, suggesting a potential shift in market conditions within the coming weeks. In a recent post on X, Wood indicated that markets "appear to be pricing in that turn," citing early indicators that the current tightening cycle is losing momentum.
In this recent webinar, I discuss why the liquidity squeeze that has hit #AI and #crypto will reverse in the next few weeks, something the markets seemed to buy, and why AI is not in a bubble. The 123% increase noted below was in Palantir’s US commercial business last qtr.
Watch… https://t.co/GdBZtEQcxM
— Cathie Wood (@CathieDWood) November 26, 2025
Wood elaborated on this sentiment, explaining that the liquidity squeeze dampening speculative appetite across crypto and AI is likely temporary. She referenced trends discussed during a recent Ark webinar, arguing that macro conditions, particularly in credit markets, suggest easing may arrive sooner than anticipated.
Ark Invest's Strategic Moves
Despite the current market conditions, Ark Invest has continued to increase its exposure to crypto-linked public companies. The firm has accumulated additional shares of Block, Coinbase, and Robinhood, while also expanding its positions in Circle and Bullish. Wood’s perspective aligns with Ark’s broader thesis that digital assets are currently undervalued relative to their long-term network fundamentals.
Ark Invest’s ongoing accumulation of crypto-exposed equities demonstrates a strong conviction in a forthcoming market rebound. Coinbase remains a significant holding for Ark and is expected to be a key beneficiary of rising digital asset trading volumes. Block, which has been actively growing its Bitcoin-driven revenue streams, has also been a prominent focus in recent purchases.
Wood further challenged the notion that artificial intelligence is entering a bubble phase. She pointed to Palantir’s reported 123% year-over-year growth in its U.S. commercial revenue last quarter as evidence that enterprise adoption is still in its early stages and that demand continues to expand structurally.
Long-Term Trends and Asset Performance
Wood emphasized that the convergence of crypto and AI represents a significant long-term structural trend. She argued that both sectors are underpinned by improving fundamentals rather than solely speculative activity.
Earlier in the year, Wood also highlighted Bitcoin's sustained outperformance against gold as an indicator of a broader shift towards risk-on investment behavior. In a YouTube update, she presented a chart illustrating the Bitcoin-to-gold ratio in a consistent uptrend, underscoring Bitcoin's resilience even amidst market volatility.