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Billionaire Investor Mike Novogratz Expects Bitcoin, Gold, and Silver to Rally as Fed Pivots

Ruholamin Haqshanas
Last updated: | 2 min read
Source: a video screenshot, Bloomberg Television / YouTube

Billionaire investor and CEO of Galaxy Digital Mike Novogratz has expressed an optimistic outlook for assets like Bitcoin (BTC), gold, and silver as the Federal Reserve undergoes a shift in its monetary policy.

In an interview with Bloomberg TV, Novogratz highlighted that as the central bank transitions from a hawkish stance to a more dovish one, it will unleash “animal spirits” in the financial markets. 

He pointed out that the US dollar has already started to weaken as market participants anticipate a pivot by the Fed.

The seasoned investor remained bullish on the euro, Australian dollar, and Brazilian real, while maintaining a short position on the Chinese yuan due to underlying structural issues within the Chinese economy.

With a short dollar position, Novogratz expects the US economy to slow down, inflation to cool off, and the Fed to initiate rate cuts. 

In such a scenario, he believes that assets such as gold, silver, and Bitcoin will perform well.

Novogratz expressed his positive sentiment towards gold, mentioning that if the precious metal sustains a close above $2,000 for a few weeks, it could embark on a significant upward trajectory. 

Additionally, he noted that silver appears to be primed for a surge as it faces a squeeze in market conditions.

“Gold, silver, bitcoin really all should do well if the Fed is finished hiking rates and starting to cut,” Novogratz predicted.

More Factors Could Drive BTC Price Up

Novogratz further elaborated that several other factors could drive Bitcoin to new heights, including the potential approval of spot Bitcoin exchange-traded funds (ETFs), a shortage of sellers in the market, and the upcoming halving cycle.

Novogratz concluded by stating that the forthcoming election year in 2024 would introduce additional political uncertainty, serving as a tailwind for Bitcoin. 

Moreover, as the United States, Europe, and Japan continue to grapple with fiscal challenges, investors are seeking alternative stores of value, which initially fueled the interest in Bitcoin.

The optimism around the launch of a spot Bitcoin ETF has fueled the recent rally in crypto markets, which saw the flagship cryptocurrency reach as high as $38,000.

Analysts at financial services firm Cantor Fitzgerald believe the long-awaited spot BTC ETF is inching closer to reality.

The company, known for its prime brokerage and investment banking services, has grown confident in the approval of applications from asset managers seeking to launch a spot ETF for Bitcoin.

The SEC has been hesitant to approve a spot bitcoin ETF due to concerns about potential manipulation on offshore spot platforms.

However, Cantor Fitzgerald believes that the market surveillance procedures proposed by new applicants could address these worries and sway the SEC towards approval.

The firm’s analysts Josh Siegler and Will Carlson emphasized the importance of establishing a “comprehensive surveillance-sharing agreement with a regulated market of significant size” to appease regulators.