Galaxy Digital CEO Mike Novogratz Says this is the Best Time to Buy Bitcoin
The Galaxy Digital CEO Mike Novogratz reveals in an exclusive interview with CNBC on March 15 that this is the best time to buy Bitcoin, gold, and silver as the United States economy faces credit crunch.
Novogratz explained that signs from the oil market shows that the economy is heading into a recession, and the indiscriminate collapse of U.S. banks like Silicon Valley bank (SVB), Silvergate bank, and Signature will favour digital assets.
"The oil market is telling you we're heading into a recession. Powell should pause and will be cutting rates sooner than we think," says @novogratz. "If there was ever a time to be in #Bitcoin and #crypto, this is why it was created." pic.twitter.com/5gIvq1hWBO
— Squawk Box (@SquawkCNBC) March 15, 2023
He, however, argued that the credit crunch will not be limited to the U.S., but it will be a global phenomenon. Thus, he recommended that anyone willing to capitalize on the opportunity should buy Bitcoin, gold and silver.
Novogratz further justified his claim on the premise that banks usually rebuild capital by lending less; as such, credit crunch appears inevitable with several indicators like the commodities market tilting towards recession.
It would be recalled that the U.S. banking crisis started due to the failure of crypto bank Silvergate to publish its 10-K report, thereby leading to its fold up.
This was further compounded by the indiscriminate collapse of banks such as Silicon Valley Bank (SVB), and Signature bank in less than a week.
Assessing Novogratz’ Bullish Sentiment
Taking a cue from Novogratz predictions in the past, there is no mincing word that he is naturally a bullish gravano. On Feb. 15, Novogratz envisaged that Bitcoin will hit $30,000 before the end of the first quarter of 2023 – which now seems impossible.
Although Bitcoin skyrocketed in price after the banks’ collapse, reaching 2023 highs of $26,514 on March 14, it has drastically reversed. At the time of writing, it is trading at $24,281 according to CoinMarketCap data.
Meanwhile, Novogratz forecasted while speaking with CNBC that the Federal Reserve will likely reverse interest rate policy in order to cushion the effect on the economy. There is no doubt that the days ahead are still unclear and tough.