Crypto News: Bitcoin supporter and CEO of Galaxy Digital Mike Novogratz thinks there could be a credit crunch in the United States. Referring to experience from the US Federal Reserve’s monetary policy actions in recent years, he said the central bank would be cutting rates soon. Novogratz also said the current scenario emphasizes the reason why Bitcoin and crypto were created in the first place. Meanwhile, the Bitcoin price saw some correction after a rally on Tuesday in the wake of the FUD around bank stocks.
Earlier, CoinGape reported that Elon Musk reacted to Ark Invest CEO Cathie Wood’s comments that the US bank runs didn’t have any impact on Bitcoin, Ethereum, and other crypto networks. Also, Ark Invest continues to accumulate Coinbase stock, in what reflects the company’s confidence in the crypto market.
Bitcoin’s Purpose
Novogratz said the threat of a credit crunch in the economy could force the US Fed to pause rate hikes. He even said that Fed Chair Jerome Powell could cut interest rates sooner than we think. In recent times, the Galaxy Digital CEO said Bitcoin price might not reach the $30,000 mark anytime soon, in context of the November 2022 FTX collapse. However, in a latest, he said the current scenario in the macroeconomic space justifies why Bitcoin was created in the first place.
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Meanwhile, investors are gearing up for the next Fed rate hike decision in the upcoming FOMC meeting scheduled for 21-22 March 2023.
