The CEO of Galaxy Digital has predicted tough times ahead for the US economy but remains focused on crypto.
The US is on the brink of bankruptcy and now is the perfect time to buy gold, silver and Bitcoin
, said Galaxy Digital founder and CEO Michael Novogratz.
“We will have debt reduction in the United States and around the world,” Novogratz said in an interview with CNBC. “You want to be long gold and silver […] and you want to be long Bitcoin,” he said. Speaking on CNBC’s Squawk Box on March 15, Novogratz noted that banks are often rebuilding money by issuing loans, which means a recession is imminent, noting that indicators such as the stock market are already pointing to a recession.
The US banking industry has been in turmoil this month, as Silvergate Bank, Signature Bank and Silicon Valley Bank all collapsed in the same week. Moody’s downgraded the outlook for the US banking system to “severe.” Related: Traditional funds blame Silicon Valley bank collapse
Novogratz told CNBC that easing interest rate policy was in the cards, saying that while the Federal Reserve “would like to ride a horse, just to be safe,” doing so would be a “policy mistake.”
Along with his prediction of tough times for the US economy, Novogratz expressed a negative view of crypto, saying:
“If there is a time to be in Bitcoin and crypto, that’s why it was created, this time governments print a lot of money whenever the heat is high, and we see that.”
Bitcoin prices fell after the collapse of Silicon Valley Bank last week but managed to reach a 2023 high of $26,514.72 on March 14, according to CoinMarketCap.