The prevailing macroeconomic factors dominated by soaring inflation have impacted אַקיאַפּייז און די קריפּטאָקוררענסי מאַרק, with both sectors recording historical crashes. Notably, amid the conditions, the role of central banks in containing inflation has been questioned as investors look for assets to cushion them.
Consequently, billionaire investor Stanley Druckenmiller has suggested that if the masses lose trust in central banks due to tightening policies, cryptocurrencies might rally once again, he said during CNBC ס דעליווערינג אַלף ינוועסטאָר סאַמיט אויף סעפטעמבער קסנומקס.
Druckenmiller added that the current conditions make ינוועסטינג in assets like Bitcoin (בטק) challenging as the Federal Reserve faces the challenge of containing inflation and a possible recession.
The inventor cited the recent decision by the Bank of England to pause its tightening policy to start purchasing government bonds. He noted that crypto might be the go-to asset if other banks follow suit.
“I don’t own Bitcoin. <…> It’s tough for me to own anything like that with central banks tightening. I still think if the Bank of England what they did is followed by other central banks in the next two or three years if things get really bad, I could see cryptocurrency having a big role in a renaissance because people just aren’t going to trust the central banks,” Druckenmiller said.
Bitcoin’s inflationary status
Notably, Bitcoin has been touted as an inflationary hedge owing to its scarcity; however, the asset has failed to meet the standards, having corrected significantly since the start of the year. Furthermore, the crypto market continues to correlate with the לאַגער מאַרק as investors look out for decoupling.
During the session, Druckenmiller stated that the U.S. economy could potentially suffer from what he termed as a “hard landing” in the medium-term future while projecting a recession in 2023.
Overall, the billionaire also projected that the current conditions might worsen especially for future generations.
אָפּלייקענונג: דער אינהאַלט אויף דעם פּלאַץ זאָל ניט זיין געהאלטן ינוועסמאַנט עצה. ינוועסטינג איז ספּעקולאַטיווע. ווען ינוועסטינג, דיין קאַפּיטאַל איז אין ריזיקירן.
Featured image via Rocky Xu יאָוטובע
Source: https://finbold.com/billionaire-investor-s-druckenmiller-says-mistrust-in-central-banks-could-lead-to-crypto-renaissance/