© Reuters
Investing.com – Billionaire investor Michael Novogratz, a famous Bitcoin fan, reiterated his advice on Tuesday to invest in BTC, as part of a strategy to hedge against policy mistakes.
Novogratz, who founded and runs crypto investment firm Galaxy Digital, told CNBC that October could be a “turnaround month” for markets, but that shouldn’t stop investors to guard against mistakes in monetary policy and economic policy.
“That’s frankly why you should hold bitcoin and hard assets like real estate. When people print too much money, at some point you see a breakdown in trust. We’ve seen it in the UK United, briefly. … When confidence crashes, people look for other assets,” Novogratz said.
Mr. Novogratz also considered that Bitcoin’s bearish reaction to the Fed’s tightening does not prove that it is not an inflation hedge.
“When Powell started hitting inflation with a sledgehammer, of course bitcoin went down, like a lot of assets. don’t go down…you’ll see bitcoin and other assets take off again,” Novogratz said.
Fed Pivot Speculation Supports Bitcoin
And the speculations of the last few days could prove him right… Indeed, since the beginning of the week, the market has started to consider the possibility of a Fed pivot, due to the negative impact of the rate hike on the economy. Notably, yesterday’s very disappointing JOLTS US jobs report was the latest evidence of this impact.
These speculations seemed to benefit Bitcoin, which has been back above $20,000 since yesterday, sending an important bullish technical signal.
In this context, investors will closely monitor the next key US statistics likely to influence investors’ expectations for Fed policy, with in particular the ADP (EPA:) Report and the ISM services this Wednesday, then especially the NFP report on job creation for September, Friday afternoon.