Mike Novogratz – a bitcoin bull, billionaire investor, and the man behind Galaxy Digital – says if there was ever a time for residents of the United States to get involved in bitcoin, that time has come. Mike Novogratz on the State of the U.S. and Bitcon Novogratz is terribly concerned that another major financial collapse – similar to the one seen in 2008 – is coming. He believes the fall of three of the country’s biggest banks (Silicon Valley, Signature, and Silvergate) in recent weeks is something all citizens need to be worried about, and he said that the day is coming when the traditional financial space is going to feel pain like nobody could have imagined. He also said that bitcoin and various other forms of crypto – along with gold – were developed as hedges
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Mike Novogratz – a bitcoin bull, billionaire investor, and the man behind Galaxy Digital – says if there was ever a time for residents of the United States to get involved in bitcoin, that time has come.
Mike Novogratz on the State of the U.S. and Bitcon
Novogratz is terribly concerned that another major financial collapse – similar to the one seen in 2008 – is coming. He believes the fall of three of the country’s biggest banks (Silicon Valley, Signature, and Silvergate) in recent weeks is something all citizens need to be worried about, and he said that the day is coming when the traditional financial space is going to feel pain like nobody could have imagined.
He also said that bitcoin and various other forms of crypto – along with gold – were developed as hedges against collapses like the one we’re allegedly now witnessing, and thus those who own bitcoin will have a significant edge in the coming future. In an interview, he stated:
If there was ever a time to be in bitcoin and crypto, this is why it was created in that governments print too much money whenever the pain gets too great, and we’re seeing that.
Novogratz seems to believe that one of the main problems behind these three banks’ closures is that too much money has been printed in recent years. Ever since the days of the coronavirus pandemic, the Federal Reserve has been given carte blanche power when it comes to printing new USD to circulate throughout the country. This gave banks such as the ones mentioned above the false idea that the U.S. was somehow a far richer country. He commented:
In a short period of time, information has changed dramatically. The commodity market is telling you [and] the oil market is telling you we’re heading into a recession.
Throughout all this drama, the price of bitcoin has risen steadily, and at the time of writing, the world’s number one digital asset is trading in the mid-$24K region. While the asset is slightly down from the $26,500 it hit not too long before this piece was written, the currency is still enjoying a nine-month high, and it appears to be garnering new life as banks are losing theirs.
Will the Fed Ease Up?
In addition, gold has shot up into the $1,900 range. By contrast, oil has fallen more than five percent and is selling for about $73 per barrel. Novogratz commented:
How do banks rebuild capital? They lend less, and so you’re going to see a credit crunch happening in the United States, and that’s starting to get priced into the market in a dramatic way.
Lastly, he said the Federal Reserve is likely to stop hiking rates much sooner than analysts initially predicted now that the country’s banking sector appears to be in trouble.