• Mike Novogratz, CEO of Galaxy Digital, believes that investing in gold and bitcoin is the best option due to the current state of the US credit market.
• The recent banking failures have caused Moody’s outlook for the US banking system to be downgraded.
• Novogratz predicts a recession and suggests that now is an ideal time to invest in cryptocurrencies such as Bitcoin (BTC).
Novogratz Confidently Bullish on BTC Amid US Bank Crisis
Mike Novogratz, CEO of Galaxy Digital, believes that now is the time to invest in gold and bitcoin due to the current state of the US credit market. Despite foreseeing challenging times ahead for the economy of the United States, he remains optimistic about cryptocurrencies.
Moody’s Outlook for US Banking System Downgraded
The financial services sector in the United States has been rocked by recent failures in the banking industry, including those of Silvergate Bank, Signature Bank, and Silicon Valley Bank, which all occurred within the same week. As a result, Moody’s outlook for the United States banking system was lowered to negative.
Novogratz Predicts Recession & Urges Investment in Cryptocurrency
Speaking on CNBC’s Squawk Box on March 15th, Novogratz opined that a credit crisis is on the horizon for America. He stated that Federal Reserve would “like to do a dovish hike,” but doing so would be a “huge policy error.”
Novogratz also predicted more credit will be needed worldwide and suggested being “long gold and silver and long bitcoin” as he foresaw an imminent recession.
“If there was ever a moment to invest in Bitcoin and other cryptocurrencies”, he said on CNBC,”this is it”.
Bitcoin Price Drops Following Silicon Valley Bank Failure
The price of bitcoin fell sharply following failure at Silicon Valley Bank but quickly recovered afterwards. On March 14th it managed to achieve fresh 2023 highs of $26,514.72.
Conclusion
Even with banking institutions currently rebuilding capital by lending less leading up towards an inevitable financial meltdown , Mike Novogratz remains bullish about investing into cryptocurrency such as Bitcoin (BTC). With government printing more money when suffering becomes too severe , now could be considered an ideal opportunity .