U.S. billionaire investor Stanley Druckenmiller believes that the crypto markets could experience a “renaissance” if central banks lose the trust of the public amid gloomy forecasts for the global economy.
Speaking at CNBC’s Delivering Alpha Investor Summit in New York City, the businessman was quoted by the broadcaster as saying he “could see cryptocurrency having a big role in a Renaissance because people just aren’t going to trust the central banks.”
Druckenmiller also said that efforts by the Federal Reserve (Fed), America’s central bank, to swiftly unwind the excesses it helped build up during the past years with easy monetary policy did not bode well for the U.S. economy.
“So our central case is a hard landing by the end of ’23. But I don’t know, I’ve been wrong on a lot of things. I could be wrong on this, but since I do it for a living, that’s our forecast, which is a recession in ’23,” the legendary investor said.
The entrepreneur’s track record includes managing George Soros’s Quantum Fund and later serving as the president of Duquesne Capital Management before shutting down his company in 2010.
Druckenmiller cautioned he could not “rule out something really bad” happening for the country’s economy in the near future, as the past decade’s extraordinary quantitative easing and zero interest rates have spurred an asset bubble.
“All those factors that cause a bull market, they’re not only stopping, they’re reversing,” Druckenmiller said.
“When you make a mistake, you’ve got to admit you’re wrong and move on. That nine or ten months that they just sat there and bought 120 billion in bonds, I think the repercussions of that are going to be with us for a long, long time,” he stated.