After Bitcoin failed to act as an inflation hedge, its proponents are struggling to come up with another narrative, but Galaxy Digital CEO Mike Novogratz insists that the case for the world’s largest cryptocurrency is playing out “every day.”
Novogratz has pointed to the fact that the Turkish lira, the Argentinian peso, and other fiat currencies have sold off hard.
The U.S. dollar index, which measures the strength of the greenback against other fiat currencies, recently surged to the highest level in two decades.
However, Novogratz says that it is hard to see things “not breaking” in the long term due to the growing deficit. While he prays that politicians in Washington D.C. act responsibly, he believes that populism on both sides may cloud their judgment.
As reported by U.Today, Novogratz has repeatedly predicted that the price of Bitcoin would recover if the U.S. Federal Reserve were to go back to monetary easing.
For now, however, there are no signs of the Fed abandoning its hawkish monetary policy. After recently implementing the third consecutive 75-basis-point rate hike, the central bank is poised to continue hiking rates in the future in order to tame inflation.
Some followers took Novogratz’s recent doom-laden comment with a grain of salt. “The Ponzi scheme if failing bad,” a user tweeted. Another Twitter user recalled how the billionaire was flaunting his infamous Luna tattoo before the project collapsed in May.
At press time, the Bitcoin price is trading slightly above the $19,000 level.
Vladislav Sopov