The CEO of Galaxy Digital anticipates difficult times ahead for the United States economy but remains positive on cryptocurrencies.
Michael Novogratz, the founder and CEO of Galaxy Digital asserts that the United States is heading for a credit crisis and that now is the time to purchase gold, silver, and Bitcoin.
Novogratz said in a CNBC interview, “There will be a credit crisis in the United States and abroad.” “You want long positions in gold and silver […] and in Bitcoin,” he stated.
Speaking on CNBC’s Squawk Box on March 15, Novogratz said that banks usually rebuild capital by lending less, indicating that a credit crisis is approaching, adding that signs such as the commodities market are already showing a recession.
This month, the U.S. banking sector collapsed, with Silvergate Bank, Signature Bank, and Silicon Valley Bank failing within the same week. The outlook for the U.S. banking system was lowered to “negative” by Moody’s.
Novogratz told CNBC that an interest rate policy reversal was likely, stating that although the Federal Reserve would “want to conduct a dovish rise for the sake of credibility,” doing so would be a “major policy blunder.”
Coupled with his forecast of challenging times for the U.S. economy, Novogratz provided a bright outlook for cryptocurrencies, stating:
“If there was ever a moment to invest in Bitcoin and cryptocurrencies, now is it, because governments print too much money anytime the pain becomes too severe, and we’re witnessing that now.”
The price of Bitcoin decreased after the bankruptcy of Silicon Valley Bank last week but managed to hit fresh 2023 highs of $26,514.72 on March 14.
Also Read: The Majority Whip of the House has questioned the FDIC’s “purge” of cryptocurrency banks
