On CNBC’s Squawk Box, Michael Novogratz pointed out that banks tend to cut back on lending in order to restore cash reserves. This means that there is a shortage of money in the market. He noted that various indicators, such as the commodity market, are already pointing to a recession.
“We will see a credit crunch in the US and around the world. You need to buy gold and silver and, of course, bitcoins. Now is the time to invest in bitcoin and cryptocurrencies, and that is what they were created to do – to counter the mindless printing of money by governments whenever difficulties arise. And we see that they are doing so,” said the CEO of Galaxy Digital.
Recall that in recent weeks several banks have collapsed in the United States, including crypto-friendly Silicon Valley, Silvergate and Signature Bank. Interestingly, Galaxy Digital used the services of Silvergate Bank, but at the very beginning of the bank’s problems, they refused its services.
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