Mike Novogratz Says 'You Want To Be Long Bitcoin' After Warning Of Possible Credit Crunch Ahead

Michael Novogratz, CEO and co-founder of Galaxy Digital, on Wednesday said that the United States is on the brink of entering a recession – and he believes that now is the perfect opportunity to invest in cryptocurrencies.

What Happened: “We are going to have a credit crunch in the U.S. and globally,” Novogratz said in an interview on CNBC’s ‘Squawk Box’. “If there was ever a time to be in bitcoin and crypto, this is why it was created, in that governments print too much money whenever the pain gets too great, and we’re seeing that.”

"You want to be long gold and silver [...] and you want to be long Bitcoin,” he said.

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According to Novogratz, Fed Chair Jerome Powell is likely to cut interest rates sooner than most people believe, which “is a huge shift in market psychology. It has got Bitcoin BTC/USD and Ethereum ETH/USD on the move.”

The US banking industry was sent into disarray this month, as Silvergate Bank SI, Signature Bank SBNY and Silicon Valley Bank SIVB all faced catastrophic collapses within the same week. 

Price Action: At the time of writing, BTC was trading at $24,448, down 1.80% in the last 24 hours, according to Benzinga Pro.

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