Mike Novogratz predicted the growth of cryptocurrencies amid the upcoming economic collapse

Billionaire and founder of Galaxy Digital Mike Novogratz said that the US government will start cutting base interest rates in the fall, which will have a very positive impact on the cryptocurrency market.

In an interview with CNBC, Mike Novogratz shared his forecasts, saying that the US Federal Reserve will start cutting interest rates in October. Prior to that, the regulator had been raising base rates for almost a year to fight inflation. Lower rates always attract investors to invest in riskier and more profitable assets, including BTC, ETH, and other cryptocurrencies.

«If everything happens the way I think it will, cryptocurrencies will be out of reach in terms of profitability. The economy will slow down — the significant rate hikes of the past will not go without consequences. The banking crisis will create problems for small businesses in obtaining loans, which will increase the number of bankruptcies and unemployment. Therefore, the Fed will change its rhetoric, which will be a catalyst for growth for many assets, but especially for gold, silver, bitcoin, and ethereum ,» believes Galaxy Digital CEO.

In April, Novogratz already said that a cut in US base rates would have a positive impact on bitcoin. At the time, he predicted that if the Fed cut interest rates, the price of the flagship cryptocurrency would rise to $ 40,000.