CEO of assets management company Galaxy Digital, Mike Novogratz in a recent CNBC squawk box interview has asserted that Bitcoin might be the only way out of a possible recession and the coming Fed tightening.
Bitcoin to rescue the economy from a possible recession
The state of the economy in the U.S has continued to dwindle with citizens crying out at the enormous prices of goods and services. Inflation has hit a 40-year high and there is fear that the economy might enter into a recession.
The cryptocurrency space isn’t having a fly time either; prices have continued to plunge with bitcoin hitting $20,950 – a 24-hour low as of press time. Mike Novogratz, however, thinks that Bitcoin could be a way out of the Fed tightening.
He insisted that Bitcoin had seen similar situations but still rose to shocking amounts and just like how Gold led the market out of recession in the 70s, he believes bitcoin will do the same. He added that once there are glitches with the Federal Reserve’s policies, bitcoin would soar.
Fed’s Powell previously said the central bank, which in March lifted interest rates for the first time in three years, will keep raising them until the price clearly increases. There’s a prediction that the central bank will raise borrowing costs by 1.75% and 2%.
Bitcoin to plunge further? Here’s what experts think
So far, the entire cryptocurrency market has just suffered its worst crash this year, with the whole crypto market cap having dropped below $1 trillion from a $3 trillion all-time high. Bitcoin, ETH, and other coins have suffered shocking blows within the last 48 hours.
CEO of crypto investment platform Mudrex, Mr. Edul Patel noted, “BTC is down by more than 49% since the beginning of the year and 66% from its all-time high at US$68,990 in 2021.“
According to Financial Express, experts have warned traders and investors to exercise caution. These are very uncertain times with inflation plaguing top world economies and financial regulatory bodies not doing enough to combat it.