Bitcoin and Ethereum to Benefit from US Economic Slowdown, According to M. Novogratz
In a recent interview with CNBC, Galaxy Digital CEO Mike Novogratz discussed the factors driving the current crypto market rally.
According to Novogratz, rising adoption and a belief that the Federal Reserve’s tightening of monetary policy is nearing an end have been major drivers of the surge. He also predicted that an oncoming US credit crunch, triggered by the Fed’s rate hikes, will benefit Bitcoin and Ethereum.
Novogratz noted that there are currently 180 million people who own some amount of Bitcoin, and that number is growing every year.
Additionally, he pointed out that regulatory frameworks in places like Hong Kong, Abu Dhabi, and Dubai are attracting crypto investors who are wary of the US’s approach to regulation.
Regarding Ethereum’s Shapella upgrade, Novogratz believes it will be a “big win” for the second-largest crypto asset by market cap.
READ MORE: Ethereum Surges to $2,000 After Shapella Upgrade Went Live
The upgrade allows the unstaking of ETH for the first time since December 2020, and Novogratz doesn’t anticipate a significant sell-off of as a result.
Overall, Novogratz sees both Bitcoin and Ethereum as well-positioned to thrive in the current economic climate, with Bitcoin serving as a hedge against inflation and Ethereum benefiting from its growing ecosystem and upcoming upgrades.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
