The United States is headed for a credit crunch and now is the right time to buy gold, silver and Bitcoin (BTC), says Galaxy Digital founder and CEO Michael Novogratz.
“We are going to have a credit crunch in the US and around the world,” Novogratz saying in an interview on CNBC. “You want to be long gold and silver (…) and you want to be long Bitcoin,” she said.
(embed)https://www.youtube.com/watch?v=Iaya8t3iP5A(/embed)
Speech Speaking on CNBC’s Squawk Box on March 15, Novogratz noted that banks typically rebuild capital by lending less, which means a credit crunch is imminent, noting that indicators like the commodity market already point to a recession.
The US banking industry went into crisis this month, with Silvergate Bank, Signature Bank and Silicon Valley Bank collapsing in the same week. Moody’s downgraded the outlook for the US banking system to “negative.”
Related: They blame traditional finance for the collapse of Silicon Valley Bank
Novogratz told CNBC that a change in interest rate policy was on the cards, saying that while the Fed “would like to do a modest hike, just to sell credibility,” doing so would be a “big mistake of policy”.
Along with his prediction of tough times for the US economy, Novogratz expressed bullish sentiment on cryptocurrencies, saying:
“If there was ever a time to be in Bitcoin and crypto, that’s why it was created, in the sense that governments print too much money whenever the pain is too great, and we’re seeing that.”
The Bitcoin price fell after the Silicon Valley Bank crash last week, but managed to hit fresh 2023 highs of $26,514.72 on March 14, according to CoinMarketCap.
It looks like Bitcoin is moving on from its risky asset days. As more and more people begin to understand its fundamental value case, the market is slowly turning to Bitcoin as a digital form of gold.
—Handre van Heerden (@Handrev) March 14, 2023
