Government and central banks have been pulling out all stops to prevent economic collapse. A case in point is the Federal Reserve, whose balance sheet has surged more than $2 trillion in the past couple of months, and it looks set to double before the year ends. Galaxy Digital CEO Mike Novogratz discussed how the growth in money supply bodes well for assets like
gold and Bitcoin, suggesting these assets could reach unprecedented highs. Bitcoin Novogratz's Affection for Bitcoin and Gold Amid Fiscal Stimulus Spending
exploring potential investments amidst ongoing economic turbulence.
On Monday, Novogratz appeared on CNBC’s “Closing Bell” Interestingly, he maintained that while stock markets face uncertainty, he’s optimistic about hard assets, especially gold and Bitcoin.
shares his insights on investment opportunities amidst recent market swings.
Galaxy Digital CEO @novogratz — CNBC’s Closing Bell (@CNBCClosingBell) pic.twitter.com/wZPnWeqR7x
He explained that with central banks and governments ramping up their balance sheets to previously unseen levels and fiscal deficits hitting 20-25% of GDP, hard assets should rise in value due to their safe-haven status. May 4, 2020
Given this, Novogratz believes both Bitcoin and gold have a solid chance of experiencing significant price increases, potentially reaching $20,000 for Bitcoin and $1,900 per ounce of gold.
Novogratz’s remarks seem to respond to news that the U.S. Treasury Department is
borrowing an unprecedented $2.999 trillionfor the current quarter of 2020, following earlier borrowings of nearly $500 billion in Q1 and another projected $700 billion in Q3, culminating in the massive budget deficits he referenced. The Treasury, which remains a critical Bitcoin and cryptocurrency skeptic, attributes this surge to the economic fallout from the COVID-19 pandemic, necessitating fiscal measures to support U.S. businesses and citizens
Now Add the Halving Into the Mix
In just a week's time, Bitcoin will experience a 'halving,' reducing the number of new coins generated per block by half. This results in a 50% cut to Bitcoin’s inflation rate.
He illustrated the parallel: fiat currency inflation surges while Bitcoin's inflation is halved, making it a noteworthy event.
While Novogratz didn’t present a specific price outlook, his colleague Dan Morehead did.
In his company’s April newsletter, Morehead suggested Bitcoin could soar to $115,212 in future years, citing the halving’s potential impact.
Per previous reports from Blockonomi As a writer entrenched in the crypto scene since 2013, my work has appeared in leading publications like LongHash, NewsBTC, and Decrypt. Besides writing, I'm part of HTC's EXODUS team, and I also hold some Bitcoin. You can reach me at [email protected]
