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Mike Novogratz Unravels Mystery Behind Rallying Bitcoin (BTC) and Stocks

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Wed, 05/06/2020 - 17:56
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Alex Dovbnya
Mike Novogratz expects household income to be higher in the U.S. this year in spite of the COVID-19 crisis
Mike Novogratz Unravels Mystery Behind Rallying Bitcoin (BTC) and Stocks
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Galaxy Digital CEO Mike Novogratz predicts that household income could be higher in the U.S. in 2020, which would represent a huge disconnect from terrible economic data that continues to pile up during the COVID-19 crisis. 

According to the former hedge fund manager, this might explain why retail investors are flocking to stocks and Bitcoin while millions lose their jobs. 

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Jerome Powell and Uncle Sam are on your team

The U.S. stock market appears to be staging a V-shaped recovery in the face of the U.S. unemployment approaching 20 percent. The fact that the equities have seemingly divorced the economy continues to baffle many analysts.   

After an apocalyptic crash on Wall Street in March, the Federal Reserve came up with unlimited QE and other sweeping measures to calm turbulent markets. These decisive actions have instilled confidence in investors who were shooed away by the coronavirus-induced sell-off.      

On the fiscal stimulus front, Congress has already approved more than $3.6 trln in COVID-19 relief spending.  

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Betting on gold and Bitcoin

Novogratz has been one of the biggest critics of the Fed and other central banks that organized “a money-printing orgy.” 

The entrepreneur views gold and Bitcoin as obvious bets during the crisis. Speaking of the latter, he recently revealed that a lot of institutional money was flowing into the crypto space.    

Despite the central bank’s enormous effort to prop up the stock market, Novogratz believes that investors will continue to feel “nervous” until the U.S. government ramps up nationwide COVID-19 testing.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.