Mike Novogratz Says it’s Time to Buy Bitcoin

Galaxy Digital’s CEO, Mike Novogratz, remains optimistic about cryptocurrencies despite forecasting a looming credit crunch in the US and globally.

Novogratz stated in an interview with CNBC that Bitcoin was built for this current environment when asked about trades in the crypto market amid a potential credit crunch. In addition, he said the market would tilt towards the purchase of gold and silver.

Furthermore, Novogratz established that the current shift in policy by the US government may also affect the prices of stocks. He hinted that share prices may go down before finally bouncing back.

Novogratz’s forecast of a global credit crunch is in response to the failures of three major banks (Signature, Silvergate, and Silver Valley Bank) in the US. The CEO’s prediction is predicated on the idea that commercial banks may be reluctant to extend loans in the future, which might invariably lead to a credit crunch.

Mike Novogratz went further to say that the Feds and Congress must take serious measures to address deposits, otherwise pressure would continue to build on local banks and the entire financial system.

Novogratz’s bullishness for crypto is very remarkable despite his firm’s challenges. In November, Galaxy Digital announced that it has an exposure of $76.8 million in cash and crypto to the now-bankrupt FTX platform.

Experts Share their Thoughts on Recent Mishaps

Some industry participants have offered suggestions for the future in the wake of the ongoing financial crisis. 

For instance, Charles Hoskinson, founder of Cardano stressed the necessity for crypto to break links with traditional banks in a statement on Twitter. Additionally, Hoskinson believes that a decentralized crypto bank might spell the end for conventional banks.

On the other hand, Binance CEO, Changpeng Zhao had previously established that banks’ reluctance to accept crypto might ultimately affect their existence. Zhao made the statement after some banks announced they would lessen their exposure to cryptocurrencies as a result of the failure of the now-defunct FTX exchange.