Mike Novogratz: Bitcoin set to rise as Fed policy eases

Bitcoin is set to rise if the Fed abandons its aggressive rate-hike stance to curb inflation. This was stated by Galaxy Digital head Mike Novogratz.

«When Powell started beating inflation over the head with a sledgehammer, of course #Bitcoin came back down as did lots of assets,» says @novogratz. «If he gives up this fight, you’re going to see Bitcoin and other assets take right back off.» pic.twitter.com/pXTVowzl3t

— Squawk Box (@SquawkCNBC) October 4, 2022

“When [Fed Chair Jerome] Powell started beating inflation over the head with a sledgehammer, of course Bitcoin pulled back, as did many assets. If he abandons this fight, you’re going to see Bitcoin and other assets take right back off.”, the expert said.

The head of Galaxy Digital said that the Federal Reserve’s rate-hiking campaign stripped Bitcoin of its status as a powerful hedge against rising consumer prices.

SkyBridge Capital head Anthony Scaramucci questioned whether Bitcoin should be considered a hedge against inflation at all. According to the expert, to attain that status the leading cryptocurrency would need to attract a billion users.

Back in August, former hedge fund manager of Cramer & Co. and Mad Money host on CNBC Jim Cramer said that the Fed’s tightening of monetary policy would lead to washout of speculative assets like cryptocurrencies.

In September, billionaire Stanley Druckenmillerpredicted the revival of digital assets amid the collapse of a fiat-based economy.

Earlier, Grayscale analysts допустили the end of the crypto winter by the end of March 2023.

Read ForkLog’s Bitcoin news in our Telegram — cryptocurrency news, rates and analytics.