Mike Novogratz: Bitcoin will resume growth amid Fed policy e | Crypto_NFT
Mike Novogratz: Bitcoin will resume growth amid Fed policy easing
The first cryptocurrency will rise in price if the Fed refuses to aggressively raise rates to fight inflation. This was stated by the head of the Galaxy Digital cryptobank Mike Novogratz.
“When [Fed chairman] Powell started hitting inflation with a sledgehammer over the head, of course, bitcoin pulled back, like many assets. If he gives up this fight […] the quotes of the first cryptocurrency will immediately turn around,” the expert explained.
The head of Galaxy Digital said the Fed's rate hike campaign has stripped bitcoin of its status as a "powerful hedge against rising consumer prices." The Fed's policy had a greater impact through correlation with traditional financial assets than inflation itself, he added.
The head of SkyBridge Capital, Anthony Scaramucci, doubted that bitcoin should generally be seen as a hedge against inflation. According to the expert, to gain this status, the first cryptocurrency needs to attract a billion users.
Recall that in August, the ex-manager of the hedge fund Cramer & Co. and CNBC's Mad Money host Jim Cramer said the Fed's monetary tightening will "wash out" speculative assets like cryptocurrencies.
In September, former Quantum associate George Soros, billionaire Stanley Druckenmiller, predicted a resurgence in digital assets amid the collapse of the fiat-based economy.
Earlier, Grayscale analysts allowed the completion of the crypto winter by the end of March 2023.
