Billionaire Michael Novogratz said the recent stock rally may lead to another fall soon. On the contrary, he has full confidence in Bitcoin and gold.
Bitcoin will be an ideal haven
Novogratz, CEO of the cryptocurrency commercial bank Galaxy Digital, said on CNBC's "Squawk on the Street" show that investors should not be misled by the recent rise in stock prices. Instead, buying non-stock assets, including cryptocurrencies and gold, will be the right method.
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The US stock index has been bullish due to cautious optimism about the coronavirus pandemic. However, Novogratz does not intend to purchase.
I think this is short covering. The billionaire said, I think people will sell their shares in a day or two.
He emphasized that even though Bitcoin, the largest cryptocurrency, experienced one of the worst crashes last month, he is still bullish on Bitcoin. Since then, the price has recovered a large portion of the loss, and the current transaction price is above $ 7,300. Novogratz added:
My bitcoin position is high. Part of the reason I continue to add positions is that I think this is an amazing environment for long-term gold and long-term bitcoin.
He suggested that as the Fed invests trillions of dollars to save the US economy, the supply of fiat money grows like a hormone.
The money has now grown on the tree. When I was a child, I knew that money really would not grow on trees. But when a global currency printing spree kicks off … At some point, money becomes insignificant, so I think hard assets will be a big buying direction, Novogratz concluded.
Can Novogratz listen?
The boss of Galaxy Digital is always looking at bitcoin, so his latest comment is not unusual. The interesting thing about Novogratz is that he has a great network on Wall Street, and his voice may reflect the emotions of some financial elites.
For example, this billionaire is a member of Kappa Beta Phi. Kappa Beta Phi is a very secret Wall Street organization that has existed for about a century. The members of this society include senior managers and officials from all walks of life, such as former New York City Mayor Michael Bloomberg and BlackRock CEO Lawrence Fink. Interestingly, BlackRock was hired by the Federal Reserve to purchase corporate bonds and other assets on behalf of the US Treasury.