The manager of George Soros’s fortune remains bullish on cryptocurrencies despite a recent correction
In a recent interview with Bloomberg, Dawn Fitzpatrick, CEO of Soros Fund Management, predicted that Ethereum would gain “more traction” compared to Bitcoin.
Fitzpatrick claims that climate impact will increasingly come into focus. This could hamper the adoption of Bitcoin, which relies on the energy-guzzling proof-of-work consensus algorithm.
Ethereum is expected to dramatically reduce its power consumption by transitioning to proof-of-stake later this year. As reported by U.Today, co-founder Vitalik Buterin said that the merge upgrade could take place as early as this August.
Overall, she believes that crypto is here to stay, adding that it has gone mainstream. The manager of billionaire George Soros’s fortune is also convinced that blockchain is going to have some great applications.
She has pointed to the fact that mutual fund giant Fidelity recently announced that its customers would be able to invest a portion of their retirement funds in Bitcoin, a move that could significantly bolster cryptocurrency adoption.
Last October, Fitzpatrick confirmed that Soros’s family fund owned some Bitcoin.
At the same time, Fitzpatrick believes that companies that mainly hold their treasury funds in crypto are vulnerable in the near term.
Cryptocurrency prices have been under extreme pressure over the past few months, with Bitcoin logging nine consecutive weeks of losses.
Bitcoin and Ethereum are down 54% and 60.49% from their record peaks, according to data provided by CoinGecko. The market has been hammered by the Federal Reserve’s hawkishness.
Fitzpatrick told Bloomberg that the U.S. economy would be able to absorb the Fed’s rate hikes without heading into a recession.