Jerome Powell’s policies could slow down the entire cryptocurrency industry and the crypto markets according to Mike Novogratz who was seemingly not happy that US president Joe Biden decided to re-appoint Jerome Powell as the FED chair for a second term so let’s read more about it in today’s cryptocurrency news.
Novogratz believes that Jerome Powell’s policies could be detrimental to the market’s growth. In an interview with CNBC, Novogratz hinted that Powell didn’t really understand the political and the economic reality of the US so that the markets have a pessimistic view about his tenure. Speaking about the crypto market, Novogratz said that people are getting quite bearish on crypto after Powell’s re-appointment especially after he made some changes in the “macro story.” He noted:
“We have inflation showing up, you know, in pretty bad ways in the U.S. So, we can see, is the Fed going to have to move a little faster … That would slow all assets down. It would slow the Nasdaq down. It would slow crypto down if we have to start raising rates much faster than we thought.”
FED CHAIR JEROME POWELL SPEAKING AT JACKSON HOLE. IMAGE YOUTUBE
The United States is experiencing its highest inflation in over 30 years at 6.2% annually, so now we can all see the consequences that are starting to shockwave around the world with 39 of the46 world’s biggest economies showing higher inflation year to year. Mike Novogratz argued that Powell has the confidence for another mandate which means he could be even more aggressive with his policies without needing to measure his actions that can put his job at risk. Powell’s current thinking seems to be focused on an expansionary monetary policy.
However, Mike Novogratz is a crypto supporter and doesn’t plan on stopping. As CEO of Galaxy Digital, he has to study the market trends and expectations so he assures that a more distant future looks promising for the short-term ups and downs in crypto. The ecosystem is growing and more investors are entering the game which only boosts the industry’s growth:
“The amount of institutions Galaxy sees moving into this space is staggering. I was on the phone with one of the biggest sovereign wealth funds in the world today, and they’ve made the decision on a go-forward basis to start putting money into crypto. I’ve had the same conversations with big pension funds in the United States.”
Novogratz argued that the institutional investors will play a huge role in the crypto mainstream adoption and also predicted that bitcoin will reach $100K soon. He even warned that the end of the NFT rush will be fast and advised investors to take the profits and bet on BTC or ETH.