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Mike Novogratz remains bullish on Bitcoin and altcoins adoption despite the bearish market.
Mike Novogratz has weighed in on the current situation of Bitcoin, largely caused by the Federal Reserve interest rate hike. The alarming inflation crash has brought Bitcoin to its lowest price of $20,289 since December 2020. Along with other cryptocurrencies, the largest crypto asset by market cap has been continuously declining, raising fears and concerns in the crypto community. At the time of writing, the top crypto trades at a 4.08% loss to $20.915. Since BTC saw its ATH of $69,000 in November last year, it has nosedived about 70%. Celsius’ decision to freeze customers’ withdrawals sparked new hits on cryptocurrencies.
Mike Novogratz Is Confident in Bitcoin Leading the Next Rally
Amid the current crypto market condition, Mike Novogratz is confident in Bitcoin leading a new rally after the Fed reconsiders its most recent move on the interest rate increase. Speaking to CNBC in an interview, the founder of the asset management firm Galaxy Digital mentioned:
“Bitcoin will lead the markets back out of this Fed hike… The moment the Fed flinches… Because the economy’s really starting to roll over… They are going to see Bitcoin explode north.”
Many crypto companies and tech firms have started cutting jobs and freezing hiring due to the global economic downturn. A lot of companies declared they are letting staff go to allow them to continue to serve their consumers. On Wednesday, the Fed upped interest rates by 0.75%- the biggest hike in 28 years. With the inflation and threatening recession, Novogratz revealed:
“Lots of guys I talk to are seeing the next time they’re going to get engaged is when they start sensing the Fed’s going to pause.”
In his opinion, it is difficult for risk assets to perform well “as long as the Fed is hawkish.”
Novogratz Remain Bullish on Crypto Amid Bearish Market
Mike Novogratz remains bullish on Bitcoin and altcoins adoption despite the bearish market. He maintains his stance on crypto adoption growth even though the equity and crypto investors are experiencing bumpy rides. In addition to considering Bitcoin as a store of value, the crypto fan said the cryptocurrency is a “real macro asset.” At the Piper Sandler Global Exchange & Brokerage Conference on June 9th, the Galaxy Digital boss said the company will continue to onboard more staff as it is in “a very good position to build through his downturn.” This is indeed an assuring statement for its workers as employees of other crypto companies are currently out of jobs.
After referring to himself as a “LUNAtic” earlier this year, Novogratz is displeased with the collapse of the Terra ecosystem. He stated that the incident should serve as a warning to always diversify portfolios. He further encouraged crypto investors and traders to stay alert and cautious. Mike suggested that investors should occasionally know when to pull back from an asset.