Carl Icahn says crypto ‘may be here to stay’ but ‘never bought’

“ Much of the cryptocurrency issued today will not survive, but we believe cryptocurrency in one form or another could be here to stay. To be clear, we have never bought cryptocurrency, but we are studying it.

This is billionaire Carl Icahn, who told Bloomberg in an interview published Wednesday that cryptos, in one form or another, should stay put. He attributed the rise of cryptos to concerns about inflation and concerns about the value of the U.S. dollar DXY,
+ 0.13%.

The founder and chairman of Icahn Enterprises said that “a natural manifestation of the huge amount of dollars flooding our economic system is that investors are starting to worry about the value of our currency, and that concern will increase if the inflation continues. ”

BTCUSD bitcoin volatility,
+ 4.34%
and other assets have been accused of disrupting financial markets in recent weeks. Last week, Bitcoin traded up to 50% below its all-time high above $ 60,000 set earlier this year before leveling off. Bitcoin was trading near $ 40,208 in the recent action on Wednesday, up 6.8% in the past 24 hours.

US stocks have traded widely on the side in recent weeks, rocked by concerns about mounting inflationary pressures and the Federal Reserve’s reaction. Assurances from Fed officials that they view a surge in inflation as temporary while indicating that they are preparing to start discussing the possible withdrawal of extraordinary monetary policy support have been credited with calming concerns from the population. investors.

The main US stock indexes remain close to their all-time highs. The Dow Jones Industrial Average DJIA,
+ 0.11%
through Tuesday was up 1.3% for May, while the S&P 500 SPX,
+ 0.15%
was up 0.2%. The state-of-the-art Nasdaq Composite COMP,
+ 0.47%
remains down 2.2% for the month to date.

Inflationary pressures worry the investor. Asked about President Joe Biden’s performance so far, Icahn said he “has certainly kept his promise to stimulate the economy. However, he needs to be extremely careful at this point not to over-stimulate, which could lead to huge inflationary pressures as well as rising interest rates.

Biden said he expects inflation to eventually lead to higher interest rates “and a major market correction.” But when it does and how severe it will be is an impossible question to answer at this time. “

About Troy McMiller

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