Novogratz: “As Long as the Fed Acts the Way I Think…”

Billionaire Mike Novogratz, one of the staunchest supporters of Bitcoin, spoke about BTC in a live broadcast he attended.

Mike Novogratz said that since the beginning of 2023, there has been a lot of negative development in the crypto money sector, the US authorities have attacked cryptocurrencies, the banks are pressured not to invest in the crypto money sector, many lawsuits and warnings have been made, and despite all this, crypto prices have risen. Novogratz stated that this situation gave him great optimism and self-confidence regarding the cryptocurrency industry. Novogratz also said that the crypto community and Bitcoin are resurgent with the recent banking crisis.

“We’re going to have a credit crisis in the US and the economy will slow down and slow down quite seriously. This creates a great macro backdrop for Bitcoin.“

Novogratz said that with several regional banks going bankrupt recently, credit institutions will likely accept fewer customers, which could lead to a credit crisis in the United States. This, in turn, would “slow the economy” and ultimately encourage the Fed to cut rates more aggressively than expected, Novogratz argued, with the first drop in borrowing costs potentially coming by year’s end. Novogratz added that Bitcoin would be in a “sweet position” if interest rates fell again.

Pointing to the $30,000 price point reached this week for the first time since Three Arrows Capital and other firms collapsed in June 2022, Novogratz said, “Bitcoin has had a huge upswing,” adding: “As long as the FED acts the way I think it does, it doesn’t move towards $40,000. We can consolidate here first.”

Mike Novogratz was also one of the biggest supporters of the sunken altcoin Terra (LUNA) and even had a LUNA tattooed on his arm. However, after the collapse of Terra’s stablecoin TerraUSD (UST) and the sudden drop in the price of LUNA in May 2022, he admitted that it was a “big idea that failed” and said he learned a lesson in humility.