AI’s Productivity Drought May Be the Bullish Catalyst Wall Street Missed | US Crypto News
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Grab a espresso as a result of the subsequent few weeks could mark a quiet turning level hiding in plain sight. While most are centered on headlines about bubbles and fears of a slowdown, Ark Invest CEO Cathie Wood reveals a deeper shift in liquidity, coverage, and AI adoption that’s able to reshaping the outlook for tech and crypto.
Crypto News of the Day: Cathie Wood Talks About AI’s “Productivity Drought”
US liquidity is snapping back sooner than most macro watchers anticipated, and Cathie Wood believes that timing may collide with one among the most misunderstood developments in tech and crypto: the widening hole between shopper AI adoption and enterprise productiveness.
While headlines continue to warn of an AI bubble, ARK Invest argues that markets are coming into the first inning of a rebound fueled by:
- Liquidity,
- Policy easing, and
- Accelerating business AI demand.
According to ARK Invest, the US market liquidity has already begun a decisive reversal. In an in depth replace, the agency famous that liquidity “is lastly turning upward” after hitting a multi-year low in late October.
ARK said that the six-week government shutdown resulted in a $621 billion drain from the system. Still, the reopening “launched $70 billion again into markets,” with an estimated $300 billion prone to return over the subsequent a number of weeks as the Treasury General Account normalizes.
The agency added that the backdrop aligns with a dovish shift at the Federal Reserve, pushing market-implied odds of a near-term rate cut to roughly 90%.
This liquidity push comes simply as quantitative tightening is scheduled to end on December 1, an inflection level ARK believes markets haven’t absolutely priced in.
“With liquidity returning, quantitative tightening ending December 1, and financial coverage turning supportive, we imagine circumstances are constructing for markets to reverse current drawdowns probably,” the agency said.
Cathie Wood Says AI’s Productivity Drought Is the Next Bull Catalyst
Cathie Woo, the agency’s founder, CEO, and CIO, is taking the argument additional. In a current webinar, she said that the liquidity squeeze affecting AI and crypto “will reverse in the subsequent few weeks.”
The fund supervisor added that markets “appeared to purchase” the thesis, given ARK holdings rallied 8% after the session.
She additionally pushed again in opposition to the prevailing narrative that AI is in bubble territory, pointing on to business traction.
That surge is supported by Palantir’s newest earnings, which confirmed a triple-digit soar in US business income. According to Cathie Wood, that is proof that enterprises are committing capital earlier than productiveness exhibits up.
This pattern types the core of ARK’s thesis, that shopper AI is exploding whereas enterprises seem stalled, however the lag is structural, not cyclical.
“We assume this AI story has simply begun. We are in the first inning,” Cathie Wood defined, including that enterprises require time “to restructure and remodel fully” earlier than productiveness turns into measurable.
She factors to current MIT analysis displaying that the majority companies are usually not but seeing productiveness features from AI as a result of their inner techniques, workflows, and org constructions are nonetheless constructed for pre-AI operations.
However, the agency argues that this “productiveness drought” is strictly what forces CEOs into speedy funding cycles.
“…[decision-makers are already saying] we’ve obtained to do that or we’re going to lose our aggressive edge on the market,” Cathie Wood shared.
Still, ARK highlights one main threat: the vitality bottleneck. AI-compute demand is exploding so quick that as much as 20% of data-center tasks are dealing with delays.
The coming liquidity wave could supercharge AI and crypto, if vitality infrastructure scales rapidly sufficient to help it. ARK Invests believes the items are aligning, citing:
- Liquidity is rising,
- QT is ending,
- The Fed is popping dovish, and
- Commercial AI spending is accelerating.
If Wood is true, markets will not be dealing with an AI bubble, however are on the verge of the cycle’s actual starting.
Chart of the Day
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Here’s a abstract of extra US crypto information to comply with right this moment:
- The Zcash ETF no one requested for: Why critics fear a Wall Street takeover.
- XRP balance on Binance hits one-year low: What are the causes and impacts?
- Coinbase Premium exhibits first indicators of restoration as US selling pressure finally eases.
- BitMine (BMNR) price’s 17% rise this week may finish a 7-week-long despair.
- GameFi push ignites Pi Network hype, so what’s behind the rising sell wall?
- Bitcoin price climbs over $90,000 after 7 days, however liquidity issues linger.
- Ripple’s RLUSD hits document high as UAE opens the door to institutional use.
- Grayscale files for spot Zcash ETF, ZEC worth may cross $600.
Crypto Equities Pre-Market Overview
| Company | At the Close of November 26 | Pre-Market Overview |
| Strategy (MSTR) | $175.64 | $176.96 (+0.75%) |
| Coinbase (COIN) | $264.97 | $268.68 (+1.40%) |
| Galaxy Digital Holdings (GLXY) | $26.24 | $26.71 (+1.79%) |
| MARA Holdings (MARA) | $11.11 | $11.29 (+1.62%) |
| Riot Platforms (RIOT) | $14.96 | $15.19 (+1.54%) |
| Core Scientific (CORZ) | $16.18 | $16.25 (+0.42%) |
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