Mike Novogratz: Jerome Powell could slow the crypto industry

In an interview with CNBC this week, Galaxy Investment Partners CEO Mike Novogratz believes Jerome Powell’s policies can put a brake on the crypto market, the Nasdaq and all other assets.

Galaxy Investment Partners CEO Mike Novogratz

Mike Novogratz is not satisfied with US President Joe Biden’s decision

Biden elected Powell as Fed chairman for a second term. And as a general investor with no personal interest in Bitcoin, Novogratz believes Powell could hurt the growth of the crypto market.

Novogratz alluded to the fact that, in his view, Jerome Powell failed to understand the political and economic realities of the United States and the markets that shared the same vision. Regarding the crypto market, Novogratz said people are turning pessimistic again after Powell’s appointment, especially after changes in macro narrative.

“We have pretty bad inflation in the US. So we see that the Fed has to work a little faster … that will put a brake on all assets. It will slow the Nasdaq down. It would slow the cryptocurrency if it had to increase rates much faster than we thought. ”

The United States is experiencing the highest inflation in 30 years. At 6.2% annually, the impact has already spread to the rest of the world. Of these, 39 of the world’s 46 largest economies had higher inflation than in the same period last year.

Novogratz argues that now that Powell has been reappointed, he can safely be more aggressive with his policies. And Powell’s thinking so far has been in favor of an expansive monetary policy.

As the CEO of Galaxy Digital, Novogratz, a crypto enthusiast, has to constantly study market trends and expectations. He assured that the more distant future looks promising after short-term ups and downs for the cryptocurrency. The cryptocurrency ecosystem is growing and more and more institutional investors are jumping into the game, which is fueling the growth of the industry.

“The number of institutions targeting the crypto space is amazing. I spoke to one of the largest sovereign wealth funds in the world today and they decided to invest in cryptocurrencies. I also have similar conversations with the major pension funds in the US, ”he shared.

Novogratz has always argued – especially in 2017 and 2018 – that institutional investors will play an important role in the rise of the crypto industry and that Bitcoin could easily reach $ 100,000. Last month, Novogratz warned that the end of the NFT frenzy could be near and advised investors to take profits and put their money in Bitcoin or Ethereum.

On October 8, Novogratz stated that many NFTs are trading large sums of money primarily because of the emotions of those involved and expectations – not because of the right fundamentals:

“This is in no way normal, shape or form … It seems like a pretty good time to me to take profits and put in Bitcoin or Ethereum or some other token.”

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