Billionaire Mike Novogratz Believes Fed Chair Jerome Powell Could ‘Slow Crypto Down’

Mike Novogratz, the billionaire investor has cautioned that Chairman of the Federal Reserve, Jerome Powell, could push the crypto market to slow down during his second term in the position. Novogratz spoke about the re-nomination of the Fed chair and said that Powell could play the role of a central banker, instead of a guy that wants to be reappointed. The CEO of Galaxy Digital discussed the impact on the re-nomination of the existing chairman of the Federal Reserve on the crypto space last week for another term. Powell was nominated by President Joe Biden for serving a second term in his position.

Powell has held the position of chairman when the biggest monetary stimulus was issued in the history of the United States for helping the economy in coping up with the coronavirus pandemic and the crisis that followed. Novogratz said that there had been a bit of change in the macro story and added that Powell’s reappointment could lead him to act less like a guy who wishes to be appointed and more like a central banker. He opined that inflation was having a big impact in the US and not in a good way.

The billionaire fund manager said that they would have to see if the Federal Reserve would move a bit faster. He said that doing so would slow down all the assets, which include the Nasdaq and also the crypto market, if the Fed decides to hike up the interest rates faster than anticipated. FBB Capital Partners’ director of research, Mike Bailey also talked about the effect of Powell’s second term as the chairman of the Fed on the crypto space. He said last week that a second term by Powell in his current position would provide confirmation bias to hard crypto bulls.

He said it was because these investors consider crypto as a hedge against a loose policy from the Fed. However, other experts are of the opinion that there is considerable uncertainly in the market over any additional support coming from the Federal Reserve. Meanwhile, Novogratz continues to remain bullish where the crypto space is concerned. He sees that a staggering number of institutions would move into this space. He added that he had talked to one of the world’s biggest sovereign wealth funds and they have decided to go ahead and put their money in the crypto market.

He added that he had had similar conversations with pension funds in the United States as well. Michael Saylor, the CEO of MicroStrategy, stated recently that Bitcoin will see 100x growth to become a $100 trillion asset class. According to a recent survey, 82% of wealth managers and institutional investors plan on increasing their exposure to crypto between now and 2023. Goldman Sachs, the investment bank, stated back in May that institutional investors were turning towards bitcoin because of FOMO (fear of missing out). In other news, Novogratz’s Galaxy Digital has reached a valuation of $300 million, thanks to a Series B funding round.