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.
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.