Stanley Druckenmiller Flags Prospects for a ‘Renaissance in Cryptocurrencies’

Former George Soros Quantum Fund associate and billionaire Stanley Druckenmiller forecast the revival of digital assets amid the collapse of a fiat-based economy. He said so at a CNBC conference CNBC.

The expert expects a ‘hard landing’ for the economy in 2023 amid aggressive tightening of monetary policy by the the Fed.

In his view, quantitative easing and low rates have led to bubbles in financial markets. Now these factors have not only halted, but reversed. The Fed has begun unwinding its $9 trillion balance sheet and has already raised the policy rate five times to 3–3.25%, anticipating its peak at around 4.6%.

“You don’t even need to talk about black swans to worry. […] The current risk premium doesn’t make much sense. […] It’s hard for me to own anything in a tightening monetary policy environment,” — he explained.

In case of loss of faith in central banks’ actions, cryptocurrencies “will play a major role in the renaissance,” Druckenmiller forecast.

The expert expects that the Fed “will finish the job it enjoys doing.”

“I just hope they will stick to their guns, because in the 70s it was awful. They must kill the dragon [inflation]. […] Obviously, pain lies ahead,” — he said.

Earlier in November, Stanley Druckenmiller noted that a bubble can be named not only for cryptocurrencies.

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