The founder and CEO of Galaxy Digital believes looming rate cuts by the Fed are bullish for Bitcoin (BTC) and precious metals.
Billionaire Mike Novogratz tells his 466,200 followers on the social media platform X that rate cuts may be bad for the US economy, but good for Bitcoin.
He suggests rate cuts will increase liquidity, boosting Bitcoin, and that more investors will view the crypto king as a safe store of value in uncertain economic times.
“Call me crazy but I don’t see one good reason for the Fed to cut rates. Yet think they will. It’s a great setup for BTC, gold, silver, and copper. It’s not a great setup for the USA though. We need a politician who will cut spending dramatically! Sound of silence from DC.”
In an interview with crypto analyst Scott Melker, Novogratz says that Bitcoin may soar beyond his base case of $100,000 in 2024 as the US’s mounting debt threatens to debase the US dollar.
“What worries me, quite frankly, is that we do get into the runaway train in crypto. There is a scenario where you can see crypto become a runaway train. It’s just self-fulfilling and it eats itself. You’re not at $100,000, but you’re at $300,000 or $400,000. It’s not my base case, but I can make that scenario up.
That’s not good for society. Society doesn’t like all these new people: ‘How did that guy get so rich and I’m not?’ It’s what creates revolutions. It creates wars. It creates a breakdown in civil society. We can have wealth transfers at a moderate pace, but when they happen at rapid paces it really is often not good…
I think Bitcoin can go up just because of adoption. But to see it explode usually will be because we’re losing control of our debt.”
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