Galaxy Digital founder and CEO Mike Novogratz is optimistic that Bitcoin (BTC) will lead the markets to recovery once a key political decision is reversed.
Novogratz says in an interview with CNBC that once the Federal Reserve stops or reverses interest rate hikes, the flagship crypto asset will lead a market-wide rally.
“Bitcoin will pull the markets out of this Fed hike. The moment the Fed shudders, the moment [Jerome] Powell pauses because the economy is really starting to turn around, you’re going to see Bitcoin explode to the north…
Stocks often go even lower. If you look back in the 1970s, gold pulled the market back, not stocks. And so I think we have established Bitcoin as a macro asset.”
Galaxy Digital CEO says based on anecdotal evidence, market participants plan to re-enter the market once the Federal Reserve stops interest rate increases.
“A lot of the guys I talk to are seeing that the next time they’re going to commit is when they start to feel like the Fed is going to pause…
As long as the Fed is aggressive, it’s hard for any risky asset to do really well.”
According to Novogratz, the current crypto downturn is “more painful” compared to previous bear seasons as the industry is bigger.
“This is certainly more painful because the numbers are bigger. More money lost, more infrastructure installed, and all of a sudden it’s a huge industry. I think we will see job cuts, I think the industry will downsize quickly.”
At the time of writing, Bitcoin is trading at $20,608, just over 70% down from the all-time high reached seven months ago.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
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