- Stanley Druckenmiller made sobering statements about the current situation of the US economy.
- He predicts the US will have a recession by 2023.
- Meanwhile, some crypto analysts believe BTC will go as low as $14,000 this year.
By this time, many people, especially traders and investors in various markets aside from cryptocurrency, would have thought that the market has already found its bottom. The US dollar’s continuous rise despite everything crashing down may prompt others to believe that stocks and bonds will follow.
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But that may not be the wisest assumption.
Billionaire investor Stanley Druckenmiller made headlines today after stating a couple of sobering truths. He started out by explaining the repercussions of the US’ recent financial and interest rate policy changes.
For the uninitiated, Druckenmiller predicted that the US economy will undergo a crisis around 2020 or so. What is hair-raising is that he made the prediction around one decade ago.
Given the trajectory of the US debt and the Federal Reserve’s interest rate, Druckenmiller claims that by 2027, the interest expense on the US’ debt will eat all healthcare spending. What is more, by 2047 and 2049, the same would eat all discretionary spending and social security, respectively.
He concluded:
“We’re getting to the point now where interest expense on the debt is so high that it’s going to eat our ability to basically service the next generation, and I’m not even sure about the current one.”
Since late 2021, the crypto market has been following the trend of other more established markets such as stocks. Given that stocks continue to plunge lower as people continue to flock to the US dollar as a hedge, it would not be surprising if the crypto market sees lower levels soon.
In fact, some crypto analysts believe Bitcoin (BTC) will go as low as $14,000 this year.
At the time of writing, BTC is changing hands at $19,314.16, according to CoinGecko.
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