It’s been six months since the start of a bear market that still has room to run for those that trade tactically. The first leg of that may have ended, but as everyone knows, the bear market is highly likely to continue.
Altcoin Daily has looked at investor Stanley Druckenmiller’s predictions for the end of 2022 and the beginning of 2023.
Crypto Market To Plunge More
He’s also a billionaire who believes in bitcoin and other cryptocurrencies- so when Stanley Druckenmiller speaks, people pay attention. He was one of those investors last year in 2021, saying, “We most likely surpassed inflation, which is terrible, and the economy is terrible,” and he was correct.
“My best prediction is that we’re six months into a bear market,” said Druckenmiller. “It’s probable that the first leg has ended for those tactically trading. However, I believe the bear market still has a long way to go.”
On the other hand, the Nasdaq Composite Index has lost more than 20% of its value from its previous high, indicating a bear market. While the S&P 500 fell within points of that level intraday on May 20, a late-afternoon surge kept the benchmark’s bull market intact and has since returned 3%.
The Federal Reserve has become more forceful in combating the greatest inflation in decades, which is the cause for more losses. According to Druckenmiller, this will almost certainly result in a recession in 2023. In the past, the channel Altcoin daily explained why Stanley drunken miller is bullish on crypto and bitcoin in the long run.
He claimed a year ago that the central bank’s stance was completely incorrect and that “all markets are raging.”
So, according to Druckenmiller, it is going to be six months into a bear market with plenty of room to go, and he believes this is based on market history. The Fed has always driven us into a recession whenever inflation has exceeded 5%, or eight points something percent now, but any time over 5% in history, by how aggressive they were with rate hikes to try and counteract it. Currently, inflation is at 8%, and interest rates are just 0.75 to 1%.
However, Druckenmiller intends to short equities again in the future and wager against the US currency as part of his long-term investment strategy.
Stanley was confident that if blockchain isn’t a real force center economy in 5 to 10 years, and if it isn’t a significant disruptor with firms that will have been formed between now and then, it would do very well. However, there will be challenges, such as our banking firms, which will cause a lot of upheavals. Nevertheless, he later emphasized it by saying, “I find crypto interesting, and I have my eyes on it.”
Bitcoin vs. Gold
The investor says that in an inflationary bear market, he would prefer to hold gold but is long-term optimistic about bitcoin and is taking a wait-and-see strategy.
In the face of rising inflation, Stanley believes the US economy will enter a recession next year, and he would instead “hold more bitcoin (BTC) than gold.”
Druckenmiller’s comments were similar to those of hedge fund billionaire Ray Dalio, who said that “cash is garbage” and equities are “trashier.”
A Note to young investors
Like all the other big bulls, Stanley too has some advice for the young investors. He said, “don’t invest based on what’s going on right now, instead, purchase based on where you anticipate the climate will be in a year. In 2 years, you will be grateful for the excellent advice”
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Source: https://coinpedia.org/opinion/crypto-market-to-continue-downtrend-heres-what-traders-can-expect-by-end-of-2022/