According to Novogratz, by keeping Powell at the forefront of the EDF, You could be much more motivated to push for measures that could have a not so positive effect on the crypto sector, this without the worries of losing your position.
Mike Novogratz, CEO of Galaxy Digital and a billionaire investor in the stock markets, called it a very bad decision by US President Joe Biden to leave Jerome Powell as president of the Federal Reserve (FED), since the measures it has been adopting in recent months have been detrimental to the financial ecosystem in general and could be even more so.
“It was not a good idea to leave Powell in the Fed”, says Novogratz
This was stated by Novogratz during an interview conducted by the CNBC this week, where Novogratz indicated that the opinions issued at that time were made as an investor of the general markets, and that it was normal for people to expect a drop as the view in the price of the main markets to continue in the same direction in economic matter.
In this regard, Novogratz commented:
“We have inflation that is increasing … in a pretty bad way in the US So, we can see, the Fed will have to move a little bit faster … That should slow down all assets. It would slow down NASDAQ. It would slow down the growth rate of cryptocurrencies if we had to start raising rates much faster than we think. “
Novogratz’s concerns about Powell’s management are entrenched in the fact that with the latter’s re-election, a much more aggressive stance in his policies will very possibly come without the need to measure his actions, since this would not carry the risk of losing his position. In addition, the investor also believes that the president of the EDF in fact it supports a more expansionary monetary policy.
The crypto ecosystem continues to grow
On the other hand, Novogratz believes that the crypto ecosystem continues to grow, so the distant future looks promising for cryptocurrencies although there is no certainty of what may happen in the short term.
As such, it considers that more and more institutional investors are entering the cryptocurrency market, which is having a very favorable impact within said industry:
“The number of institutions that Galaxy sees moving into this space is staggering. I was on the phone with one of the largest sovereign wealth funds in the world today, and they have made the decision to start investing money in cryptocurrencies. I have had the same conversations with the big pension funds in the United States ”.
He also anticipated that the ecosystem of NFT could soon see the fever that emerged throughout this year die down, so he recommended investors to secure profits and choose to invest in BTC or ETH before it’s too late.
Version by Angel Di Matteo / DailyBitcoin
Picture of Unsplash