The founder and CEO of Galaxy Digital believes the impending rate cut by the Fed is bullish for Bitcoin (BTC) and precious metals.
Billionaire Mike Novogratz To tell 466,200 followers on social media platform X argue that while interest rate cuts may be bad for the US economy, they are good for Bitcoin.
He suggested that lower interest rates would increase liquidity and push Bitcoin higher, leading more investors to view the king of cryptocurrencies as a safe store of value in an uncertain economic climate.
“Call me crazy, but I don't see a single good reason for the Fed to cut rates. Still, I think they will. This is a perfect fit for BTC, gold, silver and copper. It's a setup. But it's not a very good setup for the United States. We need politicians who will cut spending significantly. Sounds of Silence from DC.”
In an interview with cryptocurrency analyst Scott Melker, Novogratz said that in his base case, Bitcoin will fall in 2024 as rising US debt threatens to depreciate the value of the US dollar. He said the price could soar above $100,000.
“Frankly, what I worry about is that we end up on a runaway train with cryptocurrencies. There is a scenario where cryptocurrencies become a runaway train. It’s just self-fulfilling. , it eats itself. It's not $100,000, but it's more like $300,000 or $400,000. This isn't my base case, but you can make that scenario.
That's not good for society. Society doesn't like these new people. “Why is that person so rich and I'm not?” That's what creates the revolution. it creates war. It brings about the collapse of civil society. We can have wealth transfer at a moderate pace, but when it happens at a rapid pace, it's often actually bad…
I think Bitcoin could go up just by being adopted. But when it explodes, it's usually because you're losing control of your debt. ”
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Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors should perform due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that transfers and transactions are made at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets. The Daily Hodl is also not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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