Galaxy Digital founder and CEO Mike Novogratz is optimistic Bitcoin (BTC) will lead the markets to recovery once a key policy decision is reversed.
Novogratz says in a CNBC interview that once the Federal Reserve pauses or reverses the interest rate hikes, the flagship crypto asset will spearhead a market-wide rally.
“Bitcoin will lead the markets back out of this Fed hike. The moment the Fed flinches, the moment [Jerome] Powell pauses because the economy’s really starting to roll over, you’re going to see Bitcoin explode north…
Equities often go down further. If you look at the 1970s, gold led the market back not stocks. And so, I think we’ve established Bitcoin as a macro asset.”
The Galaxy Digital CEO says that based on anecdotal evidence, market participants are planning to re-enter the market once the Federal Reserve pauses the interest rate increases.
“Lots of guys I talk to are seeing the next time they’re going to get engaged is when they start sensing Fed’s going to pause…
As long as the Fed is hawkish, it’s hard for any risk asset to do really well.”
According to Novogratz, the current crypto downturn is “more painful” compared to previous bearish seasons since the industry is larger.
“This is certainly more painful because the numbers are bigger. More money lost, more infrastructure in place and so it’s a big industry all of a sudden. I think we will see job cuts, I think the industry will resize itself quickly.”
At time of writing, Bitcoin is trading for $20,608, down by slightly over 70% from the all-time high reached seven months ago.
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