Billionaire investor Mike Novogratz warned that Fed Chairman Jerome Powell may slow down the cryptocurrency market during his second term.Comment on his reAt the time of the nomination, Novogratz stated that Powell could “behave more like a central bank governor than a person who wants to be re-elected.”

How Jerome Powell’s second term as Fed chairman will affect cryptocurrencies

Galaxy Digital CEO and billionaire investor Mike Novogratz (Mike Novogratz) talked on CNBC last week about Jerome Powell (Jerome Powell)’s re-election as Fed chairman may have an impact on the cryptocurrency market.

President Joe Biden nominated Powell for re-election as Fed chairman last week. Powell oversaw the largest monetary stimulus plan in U.S. history to help the economy respond to the Covid-19 pandemic and subsequent crisis.

“The macro story has changed a bit,” Novogratz explained, adding that Powell’s re-election might allow him to “behave more like a central bank governor than someone who wants to be re-elected.”

Novogratz emphasized, “Our inflation has appeared…in the United States in a very bad way,” Novogratz believes, “So we can see, does the Fed have to move faster?” The billionaire The fund manager continued:

This will slow down all assets. This will slow down the Nasdaq index. If we have to start raising interest rates much faster than we think, then encryption will slow it down.

Mike Bailey, head of research at FBB Capital Partners, also commented on the possible impact of Powell’s second term on the crypto industry. Last week Bloomberg quoted him as saying:

For stubborn cryptocurrency bulls, another Powell term may provide some confirmation bias, as these investors generally view cryptocurrencies as a hedge against the Fed’s easing policies.

However, Douglas Boneparth, president of the financial consulting firm Bone Fide Wealth, said that without the additional support of the Federal Reserve, there is overall uncertainty in how the market will react.

At the same time, Novogratz is still optimistic about the prospects of the encryption industry. He shared:

Galaxy has seen a staggering number of institutions entering this field.

“I am talking on the phone with one of the largest sovereign wealth funds in the world today, and they have made a decision to start investing funds in cryptocurrency,” he elaborated. “I had the same conversation with a large pension fund in the United States.”

Microstrategy CEO Michael Saylor recently stated that Bitcoin will grow 100 times and become 100 trillion USD asset classA survey by Nickel Digital Asset Management shows that 82% of institutional investors and wealth managers plan to Increase From now to 2023, their cryptocurrency exposure.Investment bank Goldman Sachs stated in May that the fear of missing out (FOMO) is drive Institutional investors in Bitcoin.

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