Make Kitco Your Homepage

'Recession is coming next year': time to sell stocks, buy Bitcoin – Mashinsky

Kitco News

(Kitco News) A recession will hit the U.S. next year as the Federal Reserve puts a lot of pressure on the economy with its aggressive monetary policy tightening, said Celsius Network CEO Alex Mashinsky.

One of the best strategies going into this environment is not to fight the Fed. In this case, it means getting out of the U.S. stock market, Mashinsky told Kitco News' Editor-in-Chief Michelle Makori and anchor David Lin on the sidelines of Bitcoin 2022 in Miami.

"I normally say don't fight the Fed. Fighting the Fed right now is owning stocks, owning equities … I sold all my stocks. If you don't want to fight the Fed, get out of the way," he said. "We will have a recession next year … The Fed is putting a lot of pressure on the economy by hiking rates and taking liquidity out of the market. [And we] shut down the ninth-largest economy in the world — Russia. That's huge recessionary pressure on our economy."

And after closely mirroring the performance of tech stocks, Bitcoin is ready to separate and begin its move towards the $100,000 level — a target that Mashinsky is forecasting for this year.

"From the beginning of the year, the stock market has been down, but Bitcoin has recovered most of its losses. We are seeing separation, meaning Bitcoin is finally starting to behave as a safety asset. That's why I am selling my stocks and buying more Bitcoin," he said.

Mashinsky sees Bitcoin and Ethereum performing well before and during the recession as there is "nowhere to hide" in traditional finance.

"More money is going to flow from traditional finance into CeFi (centralized finance) and DeFi because it's going to escape traditional finance. There's nowhere to put money. All the assets are inflated - real estate, bonds, stocks. You can't hide anywhere. Even if you want to buy commodities, most commodities are at all-time highs. So where are you going to park your money? The best way to do this is to move it over to an industry that is not correlated to the U.S. dollar."

Watch the video above to learn about Mashinsky's views on Bitcoin as a reserve currency and which price levels he sees as sticky resistance before hitting $100,000. Follow Michelle Makori and David Lin on Twitter.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.