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According to Michael Novogratz, the founder, and CEO of Galaxy Digital, the United States is headed toward a credit crunch, and now is a good time to invest in gold, silver, and Bitcoin (BTC).
In an interview with CNBC, Novogratz stated that a credit crunch is imminent in the US and globally, and he recommended long positions in gold, silver, and Bitcoin.
Novogratz also noted that the Federal Reserve would like to do a dovish hike, but he believes it would be a significant policy error. He stated that it would be now if there was ever a time to be in Bitcoin and crypto.
He noted that banks usually rebuild their capital by lending less, and the commodities market already indicates a recession.
Moody’s has downgraded the outlook for the US banking system to “negative,” Several banks, including Silvergate Bank, Signature Bank, and Silicon Valley Bank, have collapsed in recent weeks.
READ MORE: US Banking System Meltdown? Hundreds of Billions of Dollars in Unrealized Losses
Novogratz also predicted a reversal in interest rate policy and expressed a bullish sentiment for crypto. This is precisely why Bitcoin and crypto were created: governments print too much money, and we are witnessing the consequences.
Despite Silicon Valley Bank’s collapse, Bitcoin’s price reached new 2023 highs of $26,514.72 on March 14, according to CoinMarketCap.