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 an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
