Mike Novogratz believes that now is the time to invest in gold and bitcoin due to the current state of the US credit market. Even if he foresees challenging times ahead for the economy of the United States, the CEO of Galaxy Digital remains optimistic about cryptocurrencies.
This comes after the financial services sector in the United States has been rocked by recent failures in the banking industry, including those of Silvergate Bank, Signature Bank, and Silicon Valley Bank, which all occurred within the same week. Moody’s outlook for the United States banking system was lowered to negative.
Speaking on CNBC’s Squawk Box on March 15, Novogratz opined that a credit crisis is on the horizon for the United States, making the present the ideal moment to invest in precious metals and cryptocurrencies such as bitcoin (BTC).
The Federal Reserve would “like to do a dovish hike, just for credibility’s sake,” but doing so would be a “huge policy error,” according to Novogratz, who told CNBC that a change in interest rate policy was likely shortly. Novogratz also said that a change in interest rate policy was likely to occur.
During an appearance on CNBC, Novogratz predicted that more credit would be needed in the United States and worldwide. He said one should “be long gold and silver and long bitcoin.”
Novogratz mentioned that banking institutions rebuild capital by loaning less, which means a financial meltdown is inevitable. He noted that metrics like the commodities market are already trying to point to a recession. Novogratz also said a recession is imminent because banks usually rebuild capital by lending less.
Coupled with his forecast of challenging times for the economy of the United States, Novogratz showed a favorable outlook about cryptocurrencies by saying.
“If there was ever a moment to invest in Bitcoin and other cryptocurrencies, this is it. This is why it was formed, in that governments print too much money anytime the suffering becomes too severe, and we’re witnessing that.”
Galaxy Digital CEO Mike Novogratz
The price of bitcoin fell sharply following the failure of Silicon Valley Bank. Nevertheless, it quickly recovered. On March 14, the cost of bitcoin managed to achieve fresh 2023 highs of $26,514.72.
Bitcoin price chart | Source: Coinmarketcap
This article has been originally published at: https://crypto.news/novogratz-confidently-bullish-on-btc-amid-us-bank-crisis/