With Bitcoin perilously on the brink at $28,000 (another minus 1% at $28,094.40 in the last session), Ethereum (ETH) at $1525.57, and inflation not wanting to come back, expectations are not the best, but there are those who are cheering the crypto world by speculating that it could be a lifeline in the event of a bullish market.
Druckenmiller’s confidence placed in Bitcoin at this time of market uncertainty
In an interview, Stanley Freeman Druckenmiller, an investor with years of experience behind him and former president of the Duquesne Capital fund, which closed in 2010 with assets of $12 billion, believes that Bitcoin could be considered a safe haven asset if a bullish market were to occur and if the CPI would not be affected by the Fed’s aggressive monetary policy.
It is all possible were it not for the fact that the signs are not pointing to this, the markets have been red for some time and do not hint at turning green. Even Bitcoin and Ethereum, to name the most highly valued cryptocurrencies, are hovering at levels that only last year were hard to imagine.
Inflation, which is the child of overly generous policies of the recent past, is now being fought hard by the iron fist of Jerome Powell (Fed Chairman) and the FOMC, through rate hikes of 50 basis points at a time.
Even if inflation does not fall at a sustained pace, it is expected to happen sooner or later (the Fed has set itself a time frame of maximum three years to reach 3%).
As for the market, there is no common feeling that it will turn bullish in the short term. All this has triggered an uproar on social media from some insiders.
Emblematic is the tweet by Jason A. William, who, joking about the name of the investor and American philanthropist, calls him Drunken Miller, referring to the fact that the scenario he describes does not exist today and that we are not in a bullish market, inflationary yes but not bullish.
Irony and challenging the tweet
William’s tweet read:
“BREAKING NEWS: Legendary investor Drunken Miller: if we’re gonna have an inflationary bull market, I want to own Bitcoin”.
The words of the person who was teased much by William are partially accurate.
Bitcoin, or other cryptocurrencies that are considered solid by investors, could be a safe haven asset in the long run.
Obviously, those who expected Bitcoin to reach $100,000 last year will be disappointed this year, as will those who bought it when it was at $35,000. However, most experts agree that buying BTC to hold it in one’s portfolio over the long term is definitely a profitable investment and therefore one that could compensate for momentary shocks and losses.