Michael Novogratz, one of the famous cryptocurrency billionaires, shared his comments on the latest activity in the market. According to Novogratz, the current crisis in the USA; Bitcoin signals the need to buy gold and silver. Here are the details…
Market comment from the cryptocurrency billionaire: We will have a crisis
Michael Novogratz, founder and CEO of Galaxy Digital, says the US is heading towards a credit crisis and now is the time to buy gold, silver and Bitcoin. “We will have a credit crisis in the US and globally,” Novogratz told CNBC. In gold and silver, Bitcoin should be in a long position,” he said. Speaking on CNBC’s Squawk Box on March 15, Novogratz noted that banks are often rebuilding capital by lending less, meaning a credit crisis is imminent, and indicators such as the commodity market are already pointing to a recession.
cryptocoin.com As we reported, the US banking industry was in turmoil this month, with Silvergate Bank, Signature Bank and Silicon Valley Bank crashing in the same week. Moody’s downgraded the US banking system outlook to “negative”. Novogratz told CNBC that a reversal of interest rate policy is likely, adding that it would be a “major policy mistake” for the US Federal Reserve to do so, even though it “wants a dovish increase purely for the sake of credibility”.
Bitcoin reaches new highs
Alongside his prediction of tough times for the US economy, Novogratz expressed a bullish sentiment for crypto. “If there is ever a time to enter bitcoin and crypto, it is this time, that’s why cryptos were created because when the pain in the market gets too much, governments print a lot of money and we’re seeing that,” Novogratz said. According to the data, the price of Bitcoin fell after the collapse of Silicon Valley Bank last week, but managed to reach new 2023 highs of $26,514.72 on March 14. In fact, an analyst, Handre van Heerden, used the following statements about this rise:
It looks like Bitcoin is coming out of its risky asset days. As more and more people begin to understand the underlying value situation, the market is slowly turning to Bitcoin as a digital form of gold.
Looks like Bitcoin is moving on from its risk asset days. As more and more people begin to understand its fundamental value case, the market is slowly turning to Bitcoin as a digital form of gold.
— Handre van Heerden (@Handrev) March 14, 2023
In general, the asset class has strengths and weaknesses. For example, stocks tend to outperform bonds and gold during periods of high growth. Gold tends to outperform other assets during downturns or periods of high inflation. Bitcoin seems to have the characteristics of both stocks and gold. However, this could of course change. Time will tell how assets will move.
