Mike Novogratz, the founder of Galaxy Digital, suggests that now is the right time to buy Bitcoin, the leading cryptocurrency. In an interview with CNBC on March 15th, the billionaire compared current cryptocurrencies to the market conditions in December 2018, when the Federal Reserve’s interest rate hike caused the markets to collapse.
Novogratz confirmed that the current drop in commodity markets, especially in the oil market, indicates that the United States and the world are heading towards a recession and credit crisis.
Novogratz predicted that Federal Reserve Chairman Jerome Powell will need to pause and even lower interest rates soon, which could lead to a significant change in psychology and benefit Bitcoin and Ethereum.
“If there is a right time to stay in Bitcoin and cryptocurrencies, this is the reason they were created. Governments print a lot of money when the pain becomes severe. And we’re seeing that,” said Novogratz.
He suggested that the current banking crisis in the United States has contributed to the increase in the price of Bitcoin, where it is considered a safe asset. The decentralized nature of Bitcoin, which is not subject to regulation, was discussed after the collapse of Silicon Valley Bank (SVB), which was compared to the Cyprus crisis in 2013.
Talking about Bitcoin, Novogratz stated that digital currencies have a great potential for growth and investment, and are much better than gold at the moment. He added that Bitcoin is a safe haven in the current inflation that the global economy is suffering from, and that central banks can no longer be relied upon.
In conclusion, Novogratz urged investors to invest in digital currencies, especially Bitcoin and Ethereum, noting that prices may fluctuate slightly, but growth will be significant in the long run.