Mike Novogratz says Jerome Powell is bad for the investment sector

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Nov 26, 2021
  • The CEO of Galaxy Digital, Mike Novogratz, has stated that Jerome Powell could slow down cryptocurrencies.
  • He stated that the Fed chair pushed for an expansionary monetary policy that could have an effect on assets.
  • His remarks come after Powell was appointed for another term as the Federal Reserve Chair.

Mike Novogratz has stated that the Federal Reserve Chair, Jerome Powell, could slow down the crypto sector. He further noted that he was not pleased with the decision of the US president, Joe Biden, to pick Powell for a second term in office.

During an interview with CNBC, the Galaxy Digital CEI stated that he believed Powell did not have the political and economic state of the crypto state. He further noted that the rest of the market had negative views about Powell. 

Powell’s appointment is creating crypto bears

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Novogratz also shared his thoughts on the crypto space, stating that the market has become bearish after Powell’s reappointment.

We have inflation showing up, you know, in pretty bad ways in the US. So, we can see, is the Fed going to have to move a little faster… That would slow all assets down. It would slow the Nasdaq down. It would slow crypto down if we have to start raising rates much faster than we thought.

The rising levels of inflation in the US have been attributed to the crypto bulls earlier this month. The inflation rate in the US is currently at a three-decade high, having increased 6.2% annually. The rising inflation is causing a ripple effect globally.

He stated that Powell’s second term could be marked with a strict policy, as he is not seeking another term; hence his job will not be at risk.

Novogratz as a crypto supporter

Novogratz is an agile supporter of the crypto space. He has been bullish about the crypto sector for both the short-term and the long-term. He is among the crypto supporters who supported that Bitcoin (BTC/USD) had the potential to reach $100,000.

In the recent CNBC interview, he further noted that the crypto space was growing due to an influx of institutional investors.

The amount of institutions Galaxy sees moving into this space is staggering. I was on the phone with one of the biggest sovereign wealth funds in the world today, and they’ve made the decision on a go-forward basis to start putting money into crypto.

However, Novogratz has been sceptical about non-fungible tokens (NFTs). He noted that the value of these tokens was “not normal” and that investors should take out profits and invest in Bitcoin and Ethereum.

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