Mike Novogratz, founder and head of crypto trading bank Galaxy Digital, suggested that now is the best time to acquire the first cryptocurrency as a hedge against economic problems.
“The oil market is telling you we’re heading into a recession. Powell should pause and will be cutting rates sooner than we think,” says @novogratz. “If there was ever a time to be in #Bitcoin and #cryptothis is why it was created.” pic.twitter.com/5gIvq1hWBO
— Squawk Box (@SquawkCNBC) March 15, 2023
In an interview with CNBC, the billionaire compared the current market situation to December 2018. Then the increase by the US Federal Reserve System (FRS) of the interest rate led to the suppression of business activity.
Novogratz said the recent downturns in commodity markets like oil are evidence that the actions of the United States central bank are bringing the world closer to an economic recession and a credit crunch.
He also drew attention to the fact that interest in digital gold and other crypto assets could fuel the emerging banking crisis in the United States. On March 10, the California Department of Financial Safety and Innovation closed Silicon Valley Bank with $209 billion in assets and appointed FDIC manager. Cryptocurrency-friendly Signature Bank and Silvergate Bank also fell under reorganization or liquidation.
A similar point of view was expressed by Fundstrat co-founder Tom Lee. The expert believes that the actions of the Fed are the key to positive medium-term prospects for the first cryptocurrency.
Tom Lee of @Fundstrat gives us his reasons why he remains constructive in the intermediate term#inflation #fed #powell pic.twitter.com/C66bAYDM1H
— CNBCOvertime (@CNBCOvertime) March 13, 2023
On Tuesday, March 14, the price of the first cryptocurrency crossed the $26,000 mark. The movement was a reaction to the US consumer price report.
In February, Novogratz called “good” the chances of the first cryptocurrency to return to the level of $30,000 by the end of March.
Source: Cryptocurrency
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