Jerome Powell Could Slow Down The Cryptocurrency Industry, Mike Novogratz Says

Mike Novogratz is unhappy with US President Joe Biden's decision to elect Jerome Powell to chair the Fed for a second term. And he does not speak as a Bitcoiner, but as an investor in general: he believes that Powell could be detrimental to the growth of the markets.

In an interview with CNBC this week, Novogratz hinted that from his point of view, Jerome Powell had failed to understand the political and economic reality of the United States and that the markets have a similar view, being pessimistic about his tenure.

Beware Jerome Powell

Talking about the cryptocurrency market, Mike Novogratz said that "people are getting pretty bearish" on cryptocurrencies after Jerom Powell's appointment, especially after the changes in the "macro story."

“We have inflation popping up, you know, in a pretty bad way in the US So, we can see, the Fed will have to move a little bit faster… That would slow down all assets. It would slow down the Nasdaq. It would slow down cryptocurrencies if we were to start increasing rates much faster than we think.

The United States is experiencing its highest inflation in 30 years. At 6.2% a year, the fallout is already beginning to affect the rest of the world, with 39 of the world's 46 largest economies showing higher inflation year after year.

Mike Novogratz argues that now that Powell has the confidence of a new mandate, he can be more aggressive with his policies without having to measure his actions so as not to put his job at risk. And Jerome Powell's thinking so far seems to favor expansionary monetary policy.

Mike Novogratz remains focused on the cryptocurrency industry

However, Mike Novogratz is a lover of cryptocurrencies and does not plan to stop being one. As CEO of Galaxy Digital, you have to constantly study market trends and expectations. He ensures that the further future looks promising for cryptocurrencies after short-term ups and downs.

The crypto ecosystem is growing and more and more institutional investors are getting into the game, spurring the growth of the 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've had the same conversations with the big pension funds in the United States. "

Novogratz always argued, especially in 2017 and 2018- that institutional investors would play an important role on the rise of the cryptocurrency industry and that Bitcoin could easily hit $ 100K soon.

Last month, Novogratz warned that the end of the NFT fever could be approaching and recommended investors to make a profit and bet on Bitcoin or Ethereum.

As Cryptopotato reported On October 8, Novogratz explained that many NFTs trade large sums of money primarily because of stakeholder emotion and expectations, not proper fundamentals:

"That is not normal, in any way, shape or form ... It seems to me that it is a good time to at least reserve some profit and double it back into Bitcoin or Ethereum or another token."