Galaxy Digital CEO Mike Novogratz shared his thoughts on cryptocurrencies and the general markets in a recent conversation. Billionaire businessman Novogratz, known for his cryptocurrency-friendly stance, follows market trends closely.
At one point, the Bitcoin price dropped to $16,000, but started to climb again due to speculation around spot Exchange Traded Funds (ETFs). However, the recent rather rapid increase appears to be related to Bitcoin's role as an alternative to fiat currencies and a hedge against money printing.
Novogratz stated that the FED's last press conference was as dovish as everyone expected and emphasized the importance of the change in the FED's policy. Fixed income markets, stock markets and other markets began to trade in anticipation of the FED changing direction.
It is a matter of curiosity whether the policy change will be made in March or January, or whether it will be waited until the April meeting. This decision will likely depend on the Fed's rhetoric and inflation data.
Novogratz believes the cryptocurrency market appreciates this change in the Fed's stance. He also predicts that the Bitcoin Spot ETF will be approved before SEC Chairman Gary Gensler's Jan. 10 deadline before it faces issues with Grayscale and a potential lawsuit.
Although the approved ETF will not begin trading immediately following the announcement, it is expected to be operational within six to eight weeks, according to Novogratz. This delay could further fuel Bitcoin's already feverish performance, according to the billionaire.
*This is not investment advice.