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Mike Novogratz: Reassigning Jerome Powell Will Harm Bitcoin

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Mike Novogratz: Reassigning Jerome Powell Will Harm Bitcoin

After Joe Biden’s proposal to leave Jerome Powell as chairman of the Fed for a second term, the number of bears began to grow in the cryptocurrency market. Mike Novogratz, the founder of the Galaxy Digital cryptobank, said this on CNBC.

A top manager questioned Powell’s ability to grasp the economic reality of the United States. In his opinion, the markets are pessimistic about Biden’s plans to extend the term of office of the current head of the Fed.

“Inflation has intensified […] we’ll see if the Fed has to move a little faster. […] This will weaken all risky assets. […] This will lower the rates of cryptocurrencies, if we have to raise rates much faster than we expected, “- said the CEO of Galaxy Digital.

Novogratz noted the risks of Powell’s more aggressive monetary policy following the reassignment. He will be prompted to do this by avoiding fears of receiving a negative assessment of the work. Prior to Biden’s decision, the head of the Fed was leaning in favor of a slow exit from monetary stimulus.

Galaxy Digital CEO expressed optimism about the long-term outlook for the crypto industry after short-term ups and downs.

“The number of firms that are coming into this space is staggering. One of the largest sovereign wealth funds has made the decision to invest in digital assets on an ongoing basis. I had similar conversations with large pension funds in the United States, ”said the top manager.

Recall that on November 26, the bitcoin rate fell below $ 55,000.

In October, Novogratz predicted that the price of the first cryptocurrency would reach the level of $ 500,000 in ten years, and 75% of cryptocurrencies would disappear by that time.

Earlier, the CEO of Galaxy Digital called bitcoin the “next internet” that no investor wants to miss.

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