Billionaire Mike Novogratz Says Bitcoin and Precious Metals Are About to Experience a Great Setup Due to the Imminent Rate Cuts

Bitcoin (BTC) and precious metals are likely to benefit from the Federal Reserve’s impending rate reduction, according to Galaxy Digital’s founder and CEO.

Billionaire Mike Novogratz tells his 466,200 X followers that although rate cuts could hurt the US economy, they would be beneficial for Bitcoin.

According to him, lowering interest rates would enhance liquidity, which in turn would benefit Bitcoin, and more investors would see the crypto currency as a secure investment in these unpredictable economic times.

“Call me insane, but I cannot think of a single valid reason why the Federal Reserve should reduce interest rates. Still, I think they will. It’s an excellent arrangement for copper, gold, silver, and Bitcoin. But it’s not a good scenario for the United States. Someone in politics has to step up and drastically reduce spending. Washington, DC, is silent.”

Novogratz said in an interview with crypto analyst Scott Melker that, due to the debasement of the US dollar looming in 2024 as a result of the US’s increasing debt, Bitcoin’s value might surge above its base case of $100,000.

“The fact that we do board the crypto runaway train is what really bothers me. One possible outcome is that cryptocurrency becomes a train that runs wild. It consumes itself and is completely self-sufficient. It’s more like $300,000 or $400,000. Not $100,000. I can certainly create such situation, even if it isn’t my baseline.

That’s harmful to society as a whole. Many in the established world are suspicious of new arrivals and wonder, How did that man become so wealthy and I’m not? That is the essence of revolutions. It leads to conflicts. It causes society as a whole to disintegrate. While slow wealth transfers are possible, quick ones are usually bad for everyone involved.

Bitcoin could potentially increase simply due to increased adoption. However, if it were to burst, it would likely be due to our inability to manage our debt.”

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