- Mike Novogratz recently claimed that the United States is heading towards a credit crunch.
- The CEO of Galaxy Digital believes that buying bitcoins and gold is a wise move in this economy.
- According to Novogratz, a reversal in the country’s interest rate policy is imminent.
Mike Novogratz, founder and CEO of New York-based cryptocurrency investment firm Galaxy Digital, recently shared his take on key investments amid the turmoil in the traditional banking industry. Novogratz’s comments came during an interview with CNBC’s Squawk Box.
“The oil market is telling you we’re heading into a recession,” says novogratz. “Powell has to stop and cut rates sooner than we think.” “If #Bitcoin and #crypto ever had a time to be around, this is why they were created.” pic.twitter.com/5gIvq1hWBO
— Squawk Box (@SquawkCNBC) March 15, 2023
According to Mike Novogratz, the United States is heading towards a credit crunch, and the best investment right now is gold and silver. The Galaxy Digital CEO’s support for major cryptocurrencies along with precious metals is based on the current sentiment among lenders in the US and around the world.
“If there was ever a time to be in bitcoin and cryptocurrency, that’s why it was created, governments print more money the more the pain increases, and we see that,” Mike Novogratz told CNBC’s Andrew Ross Sorkin.
The founder of Galaxy Digital believes that banks will start using a strategy where they will lend less money in an effort to rebuild their capital. According to Novogratz, this will lead to a credit crunch in the coming days. In support of his claims, he cited the current stalemate of the commodity market, which is already heading towards a recession.
Mike Novogratz has also predicted a reversal in the US Federal Reserve’s interest rate policy, as the financial regulator looks to maintain its credibility by raising interest rates. Bitcoin has been doing fairly well amid the chaos in the banking industry. Its price rose as much as 18%, reaching nearly $26,000 on March 14th.
Galaxy Digital CEO Mike Novogratz Says It’s Time to Buy Bitcoin appeared first in Coin Edition.