The founder and chief executive of Galaxy Digital Mike Novogratz suggested that now is the best time to buy Bitcoin as a hedge against economic headwinds.
“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
In an interview with CNBC, the billionaire compared the current market conditions with December 2018, when the U.S. Federal Reserve’s rate hikes led to a slowdown in business activity.
According to Novo, recent declines in commodity markets such as oil indicate that the actions of the U.S. central bank are bringing the world closer to an economic recession and a credit crisis.
“If there was ever a time to be interested in Bitcoin and cryptocurrencies, it is now. This is what they were created for. Governments print too much money every time these problems worsen,” said the founder of Galaxy Digital.
He also noted that interest in digital gold and other crypto-assets could be boosted by the emerging banking crisis in the United States. On March 10, the California Department of Financial Protection and Innovation shut down Silicon Valley Bank with assets of $209 billion and appointed the FDIC as receiver. Banks friendly to cryptocurrency Signature Bank and Silvergate Bank were also placed into receivership or liquidated.
Co-founder Tom Lee of Fundstrat also expressed a similar view. The expert believes that the Fed’s actions bode well for Bitcoin in the medium term.
Tom Lee of @Fundstrat gives us his reasons why he remains constructive in the intermediate term#inflation #fed #powell pic.twitter.com/C66bAYDM1H
— CNBCOvertime (@CNBCOvertime) March 13, 2023
On Tuesday, March 14, Bitcoin rose past the $26 000 mark. The move came in response to the consumer-price report in the United States.
Earlier in February, Novo described the odds of Bitcoin returning to the $30 000 level by the end of March as ‘good’.