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?
That's also what some of us assume but what if you guys are wrong? But what actually happens is that people in cryptos are also panicking and selling their assets, that is why when there are economic problems the dump in crypto market is also getting worse. They think crypto markets are going to be affected badly bad they didn't know that it was their actions are the ones which affected the price.
If only they didn't panic sell, the cryptos are going to be stable or maybe experience some increase because there are some who will put their money on it for a while until the inflation subsides and until other economic problems are solved.
