The United States is headed for a credit crisis and now is the right time to buy gold, silver and Bitcoin (BTC), said founder and CEO of Galaxy Digital Michael Novogratz.
“We’re going to have a credit crunch in the US and globally,” Novogratz said in an interview on CNBC. “You want long gold and silver […] and you want long Bitcoin,” he said.
Speaking on CNBC’s Squawk Box on March 15, Novogratz noted that banks are usually rebuilding capital by lending more cheaply, which means a credit crunch is imminent, noting that indicators like commodity markets are pointing to a recession.
The US banking industry collapsed this month, with Silvergate Bank, Signature Bank and Silicon Valley Bank all collapsing in the same week. Moody’s downgraded the outlook for the US banking system to “negative.”
related: Blame traditional finance for the collapse of Silicon Valley Bank
Novogratz told CNBC that a reversal in interest rate policy is in the cards, saying the Federal Reserve is “happy to do a dovish hike, just to sell credibility,” which would be a “huge policy mistake.”
In addition to predicting tough times for the US economy, Novogratz expressed bullish sentiment for crypto, saying:
“If there’s a time for Bitcoin and crypto, then it’s made, because the government is printing a lot of money when the pain is getting bigger, and we’re seeing it.”
Bitcoin prices fell after the collapse of Silicon Valley Bank last week but could reach a new 2023 high of $26,514.72 on March 14, according to CoinMarketCap.
It looks like Bitcoin has moved on from its risk asset days. As more people begin to understand the underlying value case, the market is slowly turning Bitcoin into a digital form of gold.
– Handre van Heerden (@Handrev) March 14, 2023