Paul Tudor Jones said he believes that the US economy is on the verge of a recession. And he believes that the entire cryptocurrency market will be hurt, as the value of cryptoactive assets is expected to fall further.
Despite a broad bear market that could last for another year, he said a bullish one will come. According to Jones, both Bitcoin (BTC) and Ethereum (ETH) can rise in a post-recession world
Jones shared his thoughts on the current state of the global economy during an interview. At the time, he said that the US was headed for a recession – if they weren’t already in one.
“I think we are probably getting ready to go through the recession playbook. I believe that the 2020s will be marked by debt, fiscal deficits, and policies that show the evils of governments,” he pointed out.
In addition, Jones believes that central banks have engaged in “massive experiments” since the global financial crisis. According to him, the relief packages in the pandemic were products of monetary and fiscal experimentation.
Bitcoin Recovery
Reflecting on the digital asset sector, Jones pointed to high inflation rates as a potential catalyst for an increase in cryptocurrencies.
“We live in a time when there is a lot of money. So we have inflation, and cryptocurrencies show that everything can be different,” he said.
Jones also noted that inflation has revealed that the finite amount of Bitcoin is what brings its value and potential in the economy. When CNBC’s Andrew Ross Sorkin asked if the cryptocurrency would have a “much higher” value than it does today, Jones said yes:
“I think so, but I can’t say how much they will go up,” he said.
Jones is not the first macro legend to suggest that cryptocurrencies could eventually register a recovery. Last month, for example, Stanley Druckenmiller shared insights similar to Jones’. He suggested a possible “renaissance” of cryptocurrencies if the public begins to lose confidence in central banks. Moreover, he also predicted a “forced landing” and recession for the U.S. economy in 2023.