Galaxy Digital CEO Mike Novogratz foresees a future decline in the United States banking system operations; as such, he encourages crypto investors to purchase certain assets, including Bitcoin, that might stand the test of time.Â
The United States has struggled with the economy since the summer of 2022. For now, it’s impossible to foretell its positive turn. Moreover, Novogratz believes the downturn will last longer than expected.
Novogratz Remains Bullish On Bitcoin And Other Digital Currencies
According to Novogratz’s statement, this is the best time for investors to acquire popular digital tokens, including Bitcoin, Silver, and Gold. He believes these assets will be one of the most notable escape routes for the anticipated crunch in the United States economy.
In an interview with CNBC, Novogratz stated that the economic crunch would affect the United States and the world. He revealed the approach several banks imbibe to grow and sustain their capital. Primarily, these banks lend fewer funds to consumers to build their capital score.
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Generally, this approach will potentially add to the current credit crunch of the economy. Aside from this, the commodities market is already showing signs of a recession in the future. However, the economic downturn became more evident in March after the fallout of central banks, including Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank.
Due to the ongoing economic recession, the government has become more concerned about printing too much money, believing it will curb the issue. But Novogratz sees a possible reversal in the interest rate policy.
He noted that the Federal Reserve would likely increase the rate, which would be a significant policy error. He restated that digital currencies like Bitcoin exist to avoid the ongoing economic disorder.
How The Assets Are Performing Today
According to market watch, the most prominent digital asset, Bitcoin, saw a significant decline in its price following the collapse of Silicon Valley Bank. However, data revealed that the token reached its year’s high of $26,514.72 on March 14, 2023.
Related Reading: Why Bitcoin Could Explode To $40,000 Per Coin In A Flash
In the meantime, the broader crypto market has seen a rise above 1% over the past 24 hours. Even though the market cap is still above $1 trillion, there is a noticeable decline from its gains of March 14 and 15. But several digital assets, such as Bitcoin and Ethereum, have been trading green in the last seven days.
At the time of writing, the price of BTC in the past week is up by 13.62%, as it currently trades at $24,666.37. On the other hand, Ethereum currently shows a 7-day price gain of 8.17% while trading at $1,659.28.
Featured image from Pixabay and chart from Tradingview.com
