Billionaire Mike Novogratz Predicts Impending US Credit Crisis, Says Outcome Will Boost Crypto With Ethereum In For ‘Big Gain’
Galaxy Digital founder and CEO Mike Novogratz predicts that a US economic slowdown will benefit the two leading crypto assets.
In a new CNBC interview, Novogratz says the crypto rally is due to growing adoption and a belief that monetary policy tightening is over or near its end.
According to Novogratz, Bitcoin (BTC) and Ethereum (ETH) will perform well amid an upcoming US credit crisis triggered by the Federal Reserve’s interest rate hikes.
“And so we have a fairly contractionary rally based on a bunch of things. One is that the market is pretty sure that [Federal Reserve] Chairman Powell is pretty much done or almost done [raising interest rates].
We are heading into a credit crunch in the US and gold, Bitcoin and Ethereum, these assets will do well in a downturn, something tells us.
The second is adoption. There are 180 million people who own a piece of Bitcoin. That number grows every year. And we are seeing aggressive moves in Hong Kong, Abu Dhabi and Dubai because their regulatory frameworks are attracting crypto when the US is fighting it. And so we see a lot of Asian money moving in, we see some hedge funds in the US participating in the futures market.”
On Ethereum’s Shapella upgrade that will allow the release of ETH for the first time since December 2020, Novogratz says it will be a “big win” for the second largest crypto asset by market capitalization.
“Ethereum has underperformed a bit this year. We don’t think there will be a lot of selling, that people might want to sell their stake rewards…
It will take a couple of days to digest. But Ethereum has its own large and vibrant community doing many good things, and this is another big win, a feather in the cap for the progress of the Ethereum community…
I don’t see a big sale of Ethereum coming.”
I
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