Galaxy Digital CEO recommends buying crypto and bitcoin amid US credit crunch
Galaxy Digital CEO Mike Novogratz predicts a future slowdown in the banking system’s US operations; as such, he encourages crypto investors to buy certain assets, including Bitcoin, that can stand the test of time.
The US has struggled economy since the summer of 2022. For now, it is impossible to predict the positive turn. Moreover, Novogratz believes the downturn will last longer than expected.
Novogratz remains bullish on Bitcoin and other digital currencies
According to Novogratz’s statement, this is the best time for investors to acquire popular digital tokens, including Bitcoin, silver and gold. He believes these assets will be one of the most notable escape routes for the expected crisis in the US economy.
In a interview with CNBC, Novogratz stated that the economic crisis would affect the United States and the world. He revealed the approach several banks are using to grow and maintain their capital. Primarily, these banks lend fewer funds to consumers to build their capital score.
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In general, this approach will potentially contribute to the current credit crunch in the economy. Apart from this, the commodity market is already showing signs of a recession in the future. However, the economic slowdown became more evident in March following the fallout from central banks including Silicon Valley Bank (SVB), Silvergate Bank and Signature Bank.
Due to the ongoing economic recession, the government has become more concerned about printing too much money, believing it will curb the problem. But Novogratz sees a possible reversal in interest rate policy.
He noted that the Federal Reserve would likely raise interest rates, which would be a significant policy mistake. He reiterated that digital currencies like Bitcoin exist to avoid the ongoing economic disorder.
How the assets are performing today
According to Market Watch, the most prominent digital asset, Bitcoin, saw a significant drop in price following the collapse of Silicon Valley Bank. On the other hand, data revealed that the token reached a year high of $26,514.72 on March 14, 2023.
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Meanwhile, have broader crypto market has seen an increase of over 1% in the last 24 hours. Although the market cap is still above $1 trillion, it is a noticeable decline from the gains of March 14th and 15th. But several digital assets, such as Bitcoin and Ethereum, have traded in the green over the past seven days.
At the time of writing, the price of BTC in the last week is up 13.62% as it is currently trading at $24,666.37. On the other hand, Ethereum is currently showing a 7-day gain of 8.17% while trading at $1,659.28.
Featured image from Pixabay and chart from Tradingview.com