Mike Novogratz on crypto bottom

While many economists are questioning the possibility of an upcoming recession, a wall street veteran’s pessimistic views on an upcoming crypto bottom are slowly coming to fruition. “We’re heading into a fast recession,” says Mike Novogratz, the CEO of Galaxy Digital Holdings Ltd.

This article will decipher the views of Mike Novogratz on the possibility of an upcoming recession after another interest hike by the Federal Reserve.

Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

Mike Novogratz predicts a recession in 2023

Mike Novogratz warned users that the possibility of a recession is impending in 2023. “The economy is going to collapse”, Novogratz told MarketWatch on Wednesday, 16th June. “We are going to go into a fast recession, and you can see that in lots of ways”, the wall street vet suggested.

Novogratz talked about the housing market cooling down and inventories piling up as signs of an impending recession. Furthermore, Novogratz accurately predicted the Feds would spike the rates by 0.75 points, leading to a short-term market rally.

After Jerome Powell, the chairman of the Federal Reserve, hiked interests, Novogratz’s views came to fruition. The S&P 500 rallied by 1.5%, while the NASDAQ soared by 2.5% on Wednesday.

Moreover, Naovgratz’s predictions of an eventual market selloff were spot on just days later. After markets opened on Thursday, 16th June, S&P 500 futures traded 2.2% lower.

Is the Crypto Bottom Close?

“Layoffs are starting to roll in, and the fed is in a tough spot and will be forced to hike rates until inflation cools”, said Novogratz. The effect of this has been witnessed in the crypto community as well.

After an 8.6% YoY increase in May’s CPI reports for the U.S, the biggest cryptocurrencies began correcting. As a result, multiple crypto exchanges have started laying off workers left and right. While popular exchange Coinbase laid off over 1,000 people, BlockFi cut 20% of its payroll in 2022.

Furthermore, Mike Novogratz also compared the previous week’s crypto correction to a 1998 capital management fund collapse.

Mike Novogratz on crypto bottom

However, Novogratz is bullish on cryptocurrencies and Bitcoin for the long term. “The moment the Fed flinches, the moment, you know, Powell pauses because the economy is starting to roll over, you’re going to see Bitcoin explode north,” Novogratz said.

Novogratz expects Bitcoin to bottom at $20,00 and Ethereum to bottom at $1,000. At the time of writing, the price of the two largest crypto assets is $20,630 and $1,080, respectively.

Investors looking to Buy ETH and BTC can carry out their own research and analysis prior to making an investment.

Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

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