Billionaire Michael Novogratz said that the recent rebound in stocks might lead to another decline soon. Instead, he is confident in Bitcoin and gold.
Bitcoin Will Be Among Ideal Safe-Havens
Novogratz, CEO of crypto merchant bank Galaxy Digital, told CNBC’s “Squawk on the Street” that investors shouldn’t be misled by the recent spike in stock prices. Instead, buying non-stock assets, including cryptocurrency and gold, would be the right approach.The US stock indexes have been bullish amid cautious optimism around the coronavirus pandemic. However, Novogratz doesn’t buy it.
I think this is short covering. I think one or two more days and people will sell into it, the billionaire said.
He stressed that he was still bullish on Bitcoin, even though the largest cryptocurrency experienced one of its worst crashes last month. The price has recovered a big chunk of its losses since then however, and is currently trading above $7,300. Novogratz added:
I have a big bitcoin position. I continue to add to it partly because I think this is an amazing environment for both being long gold and long Bitcoin.
He suggested that the fiat supply is growing on steroids, as the Fed is pumping trillions to save the US economy.
Money is growing on trees right now. And I learned when I was a little kid that money really doesn’t grow on trees. And when you have a global, money printing orgy going on… at one point that comes home to roost, and so I think hard assets are going to be a big buy, Novogratz concluded.
Should You Listen to Novogratz?
Galaxy Digital boss has always been bullish on Bitcoin, so there is nothing unusual about his latest comments. The interesting thing about Novogratz is that he has big connections on Wall Street, and his voice might reflect the mood of some of his fellows from the financial elite.
For example, the billionaire is a member of Kappa Beta Phi, a very secretive Wall Street organization that has been around for about a century. The society, whose recruits are dressed in drag and ridiculed by veterans, includes top executives and officials like former New York
City mayor Michael Bloomberg and BlackRock CEO Laurence Fink. Interestingly, BlackRock was hired by the Fed to buy corporate bonds and other assets on behalf of the US Treasury.