According to Soros Fund Management CEO and Chief Investment Officer Dawn Fitzpatrick, crypto is “here to stay”, but there may be a recession on the way.
In an interview with Bloomberg, Fitzpatrick said that crypto is not going away any time soon as “it has gone mainstream”, especially with companies like Fidelity allowing US clients to add Bitcoin (BTC) to their retirement savings.
Although, the company’s fund manager says that there is “one caveat” to her views on cryptocurrency.
“Climate impact is coming increasingly in focus, so in that context, I think Ethereum (ETH) is likely to gain some more traction over Bitcoin,” Fitzpatrick, whose fund was founded by legendary investor George Soros, opined.
Giving a comment on the chance of a coming recession, Fitzpatrick said that consumer demand and U.S. companies remain “robust.” She however added that “the bottom line is that a recession is inevitable” and that it’s “just a matter of time.”
Fitzpatrick is fair in her opinion as she balances her belief that a recession will come “fairly soon” with the idea that the markets “might be wrong.”
“I don’t think we’ll avoid a recession, I just think it will be further out than people expect,” the investment manager said, noting that the US is “one of the most insulated” countries in terms of the war that is going on in Ukraine. “Europe is way more affected,” she added.
Ultimately, Fitzpatrick touched on the common psychological trap investors fall victim to, which is the fear of missing out, AKA “FOMO.”
“I think FOMO, buy high sell low,” is the most common mistake investors make, Fitzpatrick said, explaining that “you don’t need to have a great idea every day.”
“There are times to be patient, and there are times to press,” she said, adding that “the more trading someone tries to do, the more damage they tend to do.”
