Investment management firm Galaxy Digital CEO Mike Novogratz says that while US markets will continue to dip lower amid economic concerns, the crypto industry has a bulwark that can eventually stop its bleeding.
In a new interview with CNBC, the billionaire says that we’re experiencing a period of stagflation and that US markets will not have a soft landing.
“We are not going to get a soft landing. When inflation gets as high as it gets, you need to put the economy in a recession to stop inflation… Until we see layoffs until we see not 11 million people looking for jobs, you’re not going to see inflation go down.
And so we’re going to go through a painful stagflation process… The Nasdaq sell-off isn’t over. As long as the Nasdaq and other risk assets are selling off, crypto will trade spectacularly.”
However, the CEO notes that the silver lining for crypto is that blue-chip investors are “lining up” to purchase digital assets, which serves as a backstop for the industry.
“The bright note for crypto is… Amazing institutional capital is starting to line up to come into the place. BlackRock, Blackstone, Citadel, Apollo, [are] all building major crypto efforts.
And so it’s completely intuitive to me that there’s a backstop somewhere in crypto.”
Novogratz then notes that he still believes $30,000-$50,000 is the trend range of leading digital asset Bitcoin (BTC) despite recent turbulence.
“I said earlier in the year I thought BTC would be $30,000-$50,000, lots of macro headwinds and lots of adoption, I think that’s still the range. We’re edging toward the lower end of the range. That’s just the setup, unfortunately, it’s a painful one for most investors.”
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