I always assumed that an economic downturn with high inflation would lead to lower confidence in fiat currencies, causing people to run to more reliable stores of value. Traditionally these are precious metals, but crypto currencies could also serve this purpose. This flow of fiat money into crypto, would cause a bullrun with higher crypto prices. That was my idea of it.
But why do legendary investors like Michael Burry predict that we are not at the end of the bear market yet, because of a looming economic recession/depression?
Turkey and Argentina are 2 textbook examples of countries with enormous inflation. In these countries, there is demand for a stable currency.
https://www.dw.com/en/turkey-witnesses-bitcoin-frenzy-amid-economic-turmoil/a-61786507
https://www.bbc.com/news/business-60912789
So the increased demand for crypto is something I am right about.
I just don't see how this doesn't lead to a higher price of the coins.
