Mike Novogratz Says It’s Time to Buy Bitcoin (BTC)
Mike Novogratz, founder of Galaxy Digital, believes that the current global economic climate has created significant opportunities for investing in Bitcoin
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Mike Novogratz, the founder of Galaxy Digital, have suggested that now is the right time to buy Bitcoin, the flagship cryptocurrency.
In a March 15 interview with CNBC, the crypto mogul compared current market conditions to December 2018, when the Federal Reserve’s rate hike sent markets reeling. He argued that the recent decline in the commodity market, particularly the oil market, indicated that the US and the world were heading into a recession and a credit crunch.
Novogratz predicted that Federal Reserve Chairman Jerome Powell would have to take a break and even cut interest rates soon. Consequently, this could lead to a significant shift in psychology that could benefit Bitcoin and Ethereum.
“If there was ever a time to be in Bitcoin and crypto, this is why it was created,” Novogratz said. “Governments print too much money when the pain becomes too great. And we see that.” He suggested that the current US banking crisis had contributed to Bitcoin’s increased price, as it was seen as a safe haven.
Bitcoin’s decentralized and censorship-resistant nature came into the spotlight after the collapse of Silicon Valley Bank (SVB), which was compared to the Cyprus crisis in 2013. In response, the US federal government has stepped in to reassure customers that their deposits are safe and to prevent depositors from withdrawing funds from smaller lenders.
Novogratz also expressed concern about the contagion effect on the banking system. He predicted that people would learn their lessons and move toward four or five large depository institutions unless the Fed took further steps to guarantee deposits. He argued that Congress and the Fed had to do something more dramatic on deposits, otherwise there would be constant pressure on regional banks and the entire system.
As reported by U.Today, Bitcoin’s market cap managed to regain $500 billion on Tuesday, reaching $26,533 on the Bitstamp exchange.
The market is speculating that the current crisis could push the Fed to put the brakes on interest rate hikes. Novogratz’s comments suggest that Bitcoin and other cryptocurrencies could benefit from a shift in psychology and a global recession.
