With the US facing a credit crisis, now is the right time to buy gold, silver and Bitcoin (BTC), said Michael Novogratz, founder and CEO of Galaxy Digital.
“There will be a credit crunch in the US and globally,” Novogratz said. Said In an interview on CNBC. “You wanna be long gold and silver […] I want to buy Bitcoin,” he said.
busy Novogratz said in CNBC’s Squawk Box on March 15 that banks typically recapitalize by lending less, meaning a credit crunch is imminent and indicators such as commodities are already suggesting a recession. I pointed out that it shows
The U.S. banking industry has been in turmoil this month, with Silvergate Bank, Signature Bank and Silicon Valley Bank all collapsing in the same week. Moody’s downgraded its outlook for the U.S. banking system to ‘negative’.
Related: Blame traditional finance for the collapse of Silicon Valley banks
Novogratz told CNBC that the Fed “wants a dovish rate hike just to sell credibility” but that it would be a “huge policy mistake” to do so, adding that interest rate policy said that the reversal of the
Novogratz expressed his bullish sentiment on cryptocurrencies, predicting tough times for the U.S. economy.
“If there ever was a time when bitcoin and cryptocurrency got involved, this is why it was created. When the pain gets too great, governments print a lot of money and we see it.”
According to CoinMarketCap, bitcoin’s price fell after the Silicon Valley Bank collapse last week, but was able to reach a 2023 high of $26,514.72 on March 14.
Bitcoin seems to be transitioning from the risk asset era. The market is slowly embracing Bitcoin as a digital form of gold as more and more people begin to understand its fundamental value.
—Handre van Heerden (@Handrev) March 14, 2023