Mike Novogratz Says It’s Going to Take a While for Bitcoin and Ethereum to Recover

Interview with Bloomberg: Galaxy Digital CEO Mike Novogratz stated that Bitcoin and Ethereum would need to regain their bullish narratives over time.

Novogratz predicts that global macro-hedge funds will buy Bitcoin once the U.S. Federal Reserve stops raising interest rates.

“The Fed will not stop flinching… I think you’ll see many traditional macro funds who’ve had an amazing year, buying Bitcoin. He said that we would add to our position at this point.

Novogratz believes the recent cryptocurrency crash was caused by leveraged players like Three Arrows Capital, a major crypto hedge fund. Three Arrows Capital has apparently failed to meet margin demands.

According to the crypto mogul, the current crisis is similar to the collapse of Long-Term Capital Management, a now-defunct hedge-fund. After experiencing significant success, LTCM lost $4.6 billion within a matter of months because of the 1997 Asian financial crisis. It was one of the largest hedge fund failures in history, and it was eventually liquidated in 2000.

Novogratz predicts bankruptcy proceedings in many businesses.

Galaxy Digital boss is quick to compare the price performance for cryptocurrencies with Zoom Meeting, a videotelephony program. He is certain that neither Zoom nor crypto will disappear despite massive losses.

Novogratz stated, “You will rebuild an base in price, but you will rebuild your story.”

Novogratz claims that the U.S. is headed into recession and that a soft landing is not possible.

He believes that the relationship between stocks and cryptocurrencies could end on a move-forward basis.

Tesla CEO Elon Musk Has ‘Super Bad Feeling’ About US Economy

Elon Musk, Tesla CEO, stated that he feels’super bad’ about the U.S. Economy in an email sent to executives and seen by Reuters.

Two days after Musk instructed staff to either return to work or to leave, Musk sent an email titled “pause all hiring worldwide”. Musk also stated that he must reduce 10% of his staff at the electric car company.

Musk recently stated that the U.S. is in recession, or on the verge of one. Musk, the billionaire CEO at Spacex and Tesla, believes that a recession is “a good idea.” He stated: “It has been raining on fools for far too long. There must be some bankruptcies. He also predicted that the recession would last between 12 to 18 months .

Morgan Stanley analyst Adam Jonas believes Musk’s concerns should not be ignored. He elaborates:

Elon Musk is a unique expert on the global economy. We believe that his message would be highly credible.

Biden Responds To Elon Musk’s Comments

Friday’s response by President Joe Biden to Musk’s comment of’super bad feelings’ about the U.S. economic system was made on Friday.

Biden pulled out a notecard from the jacket pocket and said: “Well, let’s tell you, Elon Musk is still talking about that,”

Ford is increasing their investment in electric vehicles and hiring 6,000 employees. These are union employees. Stellantis, the former Chrysler Corporation, is also investing in electric vehicles. The president stated that Intel has added 20,000 jobs in computer chips manufacturing.

Biden finished his sentence while putting his notecard in his jacket pocket.

You know what that means: lots of luck for his trip to the Moon.

Musk responded to Biden’s tweet with “Thanks, Mr. President!’ President!

Musk isn’t the only one to predict that the U.S. will go into recession. Recently, Michael Burry Big Short investor, warned of a consumer recession. Goldman Sachs’ Lloyd Blankfein warned every consumer and company to be prepared for a recession. Soros Fund Management CEO Dawn Fitzpatrick stated that a recession was inevitable. JPMorgan CEO Jamie Dimon predicts an economic storm and advises investors to be prepared. Rich Dad Poor Dad author Robert Kiyosaki predicted that the markets would crash and that civil unrest and depression are on their way.