The AI and cryptocurrency markets could be heading into a brighter phase soon, according to ARK Invest CEO Cathie Wood. She believes that the current liquidity squeeze — the tight flow of money affecting these sectors — is about to ease in the coming weeks. This change is tied to expected adjustments in the Federal Reserve’s monetary policies, likely by December 2025.

Wood has stated that the AI sector is not experiencing a bubble, and recent market behavior supports her view. Despite current financial pressure, ARK Invest has continued pouring funds into digital assets like Bitcoin and Ethereum, showing strong confidence in the long-term potential of these technologies.

When liquidity improves, it usually brings more money into the market. For cryptocurrencies, this means more buying and selling activity, which can help stabilize or even increase prices. Major cryptocurrencies such as Bitcoin and Ethereum could benefit from this shift. Additionally, tokens connected to artificial intelligence — like Fetch.ai and SingularityNET — might attract new investor interest as optimism grows.

Historically, similar situations where the Fed eased its tightening policies have triggered strong rebounds in crypto markets. Analysts expect this pattern could repeat if the predicted liquidity shift takes place as planned.

Right now, Bitcoin is trading at around $91,172.10, with a total market value (market cap) of $1.82 trillion. In just the past 24 hours, its price has gone up nearly 4%, and trading volume has jumped over 20% to more than $70 billion. These numbers point to growing interest and activity from investors.

According to research from Coincu, if liquidity keeps improving, it could spark a wider recovery in both crypto and AI sectors. This is backed by historical data and the current strength of the market. Experts also believe that more supportive regulations could help drive further tech innovation in these areas.

In summary, the combination of easing financial conditions and strong investor interest could set the stage for a major comeback in AI and crypto — just as it has in the past.