Mike Novogratz sheds light on market jitters in his latest December interview.
Mike Novogratz explained that at the end of the year people are starting to sell things. “Everyone I talk to feels nervous right now,” he said.
“Three things are holding up the market: Tesla, Nvidia, Apple. These things are breaking down. We have already seen it in cryptos which have come of the highs,” said Mike Novogratz
Medium-term investors should not fear volatility, as Mike Novogratz sheds light on market jitters in an interview.
“It doesn’t worry me in the medium term because I see everywhere I go people are getting ready to invest in the space,” he said.
“It doesn’t worry me in the medium term because I see everywhere I go people are getting ready to invest in the space”
“We could have a messy equity market for the end of the year and the first part of next quarter. He thinks cryptos could go sideways or lower and thinks 42K for BTC should hold.
But Mike Novogratz could be as clueless regarding BTC’s short-term price trajectory, bearing in mind back in February he said Bitcoin could more than double by year-end, which is a call that did not materialize.
Nevertheless, where Mike Novogratz sheds light on market jitters is in his in-depth insider knowledge in the cryptocurrencies space.
“We start the year at 30K, and there has been so much change in the mindset,” he said.
Here comes Mike Novogratz’s takeaway;
“So much money is pouring into the space it would not make sense that crypto prices go below that. Pools of capital are starting to get into Bitcoin mining, 30 billion has gone into the venture, we have just raised 500 million dollars,” he said.
“We start the year at 30K, and there has been so much change in the mindset”
In other words, the secular bull market in cryptocurrencies is likely to continue due to the capital flows into cryptocurrencies.
Where cryptocurrencies prices head in the short term is anyone’s guess.
“But I do think there is a lot of froth, NFTS went wild, at the end of the year a lot of people are paying taxes, a lot of crypto guys are buying properties, new homeowners financing their homes through crypto profits. You see some indigestion. It is probably healthy, if you are long it feels painful, but it is probably healthy,” he said.
“In a place where currencies are collapsing Bitcoin is this generation’s version of digital gold” – Mike Novogratz
Mike Novogratz sheds light on market jitters regarding central bank monetary policy
Mike Novogratz sees cryptos currencies as a risk asset and something that people are adding to their portfolios to hedge against currency debasement. Turkey’s currency has depreciated by 75% in three years. “In the US we pray every night that the stewardship is not as bad as Turkeys,” he said.
“In a place where currencies are collapsing Bitcoin is this generation’s version of digital gold, you can buy real-estate,” he said.
Yes, there is no doubt that trends are changing. A young generation growing up in the digital world accepts code as a store of value.
Mike Novogratz thinks Powell made some bad decisions
Hard to put the genie back in the bottle. Trump spent 900 billion dollars, the single largest government spending in history when we had the greatest economy ever.
Fiscal responsibility has gone right out the window, then Covid happened, and government spending exploded. So, what is now the new natural state? We don’t know?” he said.
Hard to see that politicians will find it in their DNA to be fiscally responsible.
He believes this is a puzzle that can not be solved.
He also thinks next year could be the year of DEFI. “These are real protocols that are starting to get battle-tested and will disrupt traditional finance,” he said.
“What has been holding it back is that institutions have not been using it because of KYC issues. I think that will get solved in 2022,” he said.