Fed Chair Jerome Powell Could ‘Slow Crypto Down’ in His Second Term, Warns Billionaire Mike Novogratz – Economics Bitcoin News

Mike Novogratz, a billionaire investor, has warned that Jerome Powell, Federal Reserve Chairman could slow down crypto markets in his second term. He commented on his re-election.nomination, Novogratz said Powell could “act more like a central banker than a guy that wants to be reappointed.”

How Jerome Powell’s Second Term as Fed Chair Could Impact Crypto

Mike Novogratz (CEO of Galaxy Digital), a billionaire investor, spoke on CNBC about the potential impact of the Federal Reserve Chairman’s renumination of Jerome Powell on the cryptocurrency market last week.

Last week, President Joe Biden appointed Powell as Fed Chair for the second time. Powell was responsible for overseeing the most significant monetary stimulus U.S. history in order to assist the economy with the Covid-19 crisis and its aftermath.

The “macro story has changed a little bit,” Novogratz explained, adding that Powell getting reappointed could allow him “to act more like a central banker than a guy that wants to be reappointed.”

Emphasizing, “We have inflation showing up … in pretty bad ways in the U.S.,” Novogratz opined, “So we can see, is the Fed going to have to move a little faster?” The billionaire fund manager continued:

This would cause all assets to slow down. This would affect the Nasdaq. Crypto would be affected if rates are raised faster than anticipated.

Mike Bailey, director of research at FBB Capital Partners, also commented on the effect Powell’s second term in office could have on the crypto industry. Bloomberg reported that he said the following:

A Powell term could provide confirmation bias for crypto-believing bulls. These investors view crypto as an investment hedge against loose Fed policies.

Douglas Boneparth of Bone Fide Wealth said however that there was uncertainty over how the markets would react if the Fed does not provide additional support.

Novogratz, however, remains positive about the prospects for the crypto sector. He agreed:

Galaxy has seen a staggering number of institutions move into this market.

“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,” he detailed. “I’ve had the same conversations with big pension funds in the United States.”

Michael Saylor, CEO of Microstrategy, recently stated that bitcoin would grow 100x to be a $100 trillion asset type. Nickel Digital Asset Management found that 82% (of institutional investors) and 93% (81% of wealth managers) plan on increasing their exposure to cryptocurrency between now and 2023. Goldman Sachs Investment Bank stated that institutions are increasingly turning to Bitcoin because of FOMO (fear of missing out).

Are you in agreement with Mike Novogratz’s views? Please comment below.

Images CreditsShutterstock. Pixabay. Wiki Commons

Get more Crypto News at CFX Magazine