Buy Gold and Bitcoin Now – Novogratz Predicts US Credit Crunch
• US credit crunch and recession on the horizon according to Michael Novogratz, CEO of Galaxy Digital.
• Novogratz recommends buying gold, silver and Bitcoin (BTC) as a hedge against a potential credit crunch.
• Bitcoin (BTC) price has reached new 2023 highs despite the recent Silicon Valley Bank collapse.
US Credit Crunch Imminent
Galaxy Digital founder and CEO Michael Novogratz recently spoke to CNBC’s Squawk Box about the impending credit crunch in the United States. He predicted that banks would rebuild capital by lending less, resulting in a credit crunch for the U.S. economy and globally. Indicators like commodities are already pointing to an upcoming recession.
Novogratz advised investors to be “long gold and silver” as well as Bitcoin (BTC), citing its ability to act as a hedge against government-printed money when times get tough. He further suggested that although the Federal Reserve might do a “dovish hike” for credibility sake, it would be a “huge policy error”.
Recent Bank Collapses
The banking industry has seen several collapses this month alone, with Silvergate Bank, Signature Bank and Silicon Valley Bank all succumbing over the same week period. Moody’s also downgraded their outlook of the U.S banking system to „negative“ shortly after these collapses occurred.
Bitcoin Price Reaches New Highs
Despite these alarming events, Bitcoin (BTC) managed to reach new 2023 highs of $26,514 on March 14th according to CoinMarketCap data – signifying that markets are slowly beginning to recognize its fundamental value case rather than just seeing it as a risk asset.
It appears that now is an opportune time for investors looking for hedging options against looming economic hardship – particularly those looking towards gold, silver and Bitcoin (BTC). As more people begin to understand its underlying value case, interest may continue growing in crypto assets such as BTC which could cause prices to rise even further in coming months