Galaxy Digital founder and CEO Mike Novogratz is optimistic Bitcoin (BTC) will lead the markets to restoration as soon as a key coverage choice is reversed.
Novogratz says in a CNBC interview that after the Federal Reserve pauses or reverses the rate of interest hikes, the flagship crypto asset will spearhead a market-wide rally.
“Bitcoin will lead the markets again out of this Fed hike. The second the Fed flinches, the second [Jerome] Powell pauses as a result of the financial system’s actually beginning to roll over, you’re going to see Bitcoin explode north…
Equities typically go down additional. For those who have a look at the Nineteen Seventies, gold led the market again not shares. And so, I believe we’ve established Bitcoin as a macro asset.”
The Galaxy Digital CEO says that primarily based on anecdotal proof, market contributors are planning to re-enter the market as soon as the Federal Reserve pauses the rate of interest will increase.
“Numerous guys I discuss to are seeing the subsequent time they’re going to get engaged is once they begin sensing Fed’s going to pause…
So long as the Fed is hawkish, it’s onerous for any danger asset to do rather well.”
In response to Novogratz, the present crypto downturn is “extra painful” in comparison with earlier bearish seasons because the trade is bigger.
“That is actually extra painful as a result of the numbers are greater. More cash misplaced, extra infrastructure in place and so it’s a giant trade swiftly. I believe we are going to see job cuts, I believe the trade will resize itself rapidly.”
At time of writing, Bitcoin is buying and selling for $20,608, down by barely over 70% from the all-time excessive reached seven months in the past.
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