After President Joe Biden’s proposal to keep Jerome Powell as chair of the ФРС on a second term, the number of bears in the cryptocurrency market began to rise. On CNBC, Galaxy Digital founder Mike Novogratz said.
The top executive doubted that Powell could grasp the economic reality of the United States. In his view, markets are pessimistic about Biden’s plans to extend the tenure of the current Fed chief.
«Inflation has intensified […] we will see whether the Fed will have to move a bit faster. […] This will weaken all risk assets. […] It will depress cryptocurrency prices if we have to raise rates much faster than we had anticipated», — said the CEO of Galaxy Digital.
Novogratz noted the risks of a more aggressive approach by Powell after the renomination. This would reflect a shift away from concerns about a negative assessment of Powell’s performance. Before Biden’s decision, the Fed chief leaned toward a slow exit from monetary stimulus.
The Galaxy Digital CEO expressed optimism about the long-term prospects of the crypto industry after short-term swings.
«The number of firms entering this space is staggering. One of the largest sovereign funds has decided to invest in digital assets on a permanent basis. I’ve had similar conversations with major pension funds in the US», — shared the executive.
As reported, 26 November the price of Bitcoin fell below $55 000.
In October, Novogratz predicted that Bitcoin would reach $500 000 within ten years and that 75% of cryptocurrencies would disappear by then.
Earlier, Galaxy Digital CEO called Bitcoin “the next Internet”, which no investor wants to miss.
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