Inflation could let the markets shake from the base since the cash flow stops, and people start preferring to prioritize their basic needs instead of investing
CEO of Investment management firm Galaxy Digital, Mike Novogratz, said that there are hopes that the damage that the crypto industry is facing, the rampant that could stop bleeding eventually considering the traditional US markets will show the dip lower consistently amid concerns related to economic situations. In an interview recently with CNBC, the billionaire investor said that all the people within the market are experiencing a time of inflation. Also, he said that US markets will not have a sweet time from here or may not have a soft landing.
Novogratz stated that the market and investors in the market might not get a soft landing when inflation is getting as high as it can get, so maybe the government would need to stop inflation by putting the economy into a recession. This will continue until we see dismissal or when we do not see more than 11 million people looking for jobs, there are very few possibilities to see inflation going down.
Galaxy Digital CEO went on to say that we are now going to pass through an inflation process that is going to be painful while the Nasdaq sell-off has not been over yet. He expected that Crypto could trade spectacularly for a long time until the Nasdaq and other such risky assets keep selling off. Although, Novogratz noted a silver lining for Crypto that many blue-chip investors are adding on and lining up to purchase digital assets that would serve as a backstop for the crypto industry that is being pushed back gradually with the price dip it witnesses now and then.
He further said that Crypto is an amazing institutional capital that has begun to line up to come and get its place on a bright note. Several institutions like BlackRock, Blackstone, Citadel, Apollo, and others are building major effects on Crypto. So it completely depends upon the instinct to Mike that there is any backstop that exists somewhere in Crypto.
Novogratz also noted that he still thinks that despite the recent turbulence that the topmost cryptocurrency is facing, there is a trend range for bitcoin that is from $30,000 to $50,000. As he said earlier this year, he said that he thinks that bitcoin would be between $30,000 to $50,000, along with lots of small headwinds and a lot of adoption. He still believes in the same range for bitcoin.
Source: https://www.thecoinrepublic.com/2022/05/07/why-does-mike-novogratz-think-crypto-could-have-a-backstop-due-to-inflationary-concerns/