Novogratz Warns Jerome Powell's Renomination Endangers Crypto Market
Main page News, US Market, Banking, Michael Novogratz, Crypto Market

Galaxy Digital CEO and billionaire investor Mike Novogratz said during a recent interview with CNBC that Jerome Powell's renomination as Fed chair triggers many unpredictable outcomes for the cryptocurrency market. Particularly, the Galaxy Digital CEO is worried that with the second term Powell can act "more like a central banker than a guy that wants to be reappointed."

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"And we have inflation showing up, you know, in pretty bad ways in the US. And so we can see, is the Fed going to have to move a little faster? That would slow all assets down. It would slow the Nasdaq down. It would slow crypto down, if we have to start raising rates much faster than we thought," Novogratz said.

The amount of institutions Galaxy had seen moving into this space is staggering despite regulatory uncertainty, Novogratz admitted. Novogratz hinted he was already on the phone "with one of the biggest sovereign wealth funds in the world today," adding that the fund has made the decision on a "go-forward basis to start putting money into crypto."

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Earlier in October, Powell revealed that the Fed does not want to ban stablecoins or cryptocurrencies. Testifying in Congress, Powell said he had misspoken when he tried to explain the regulator's position regarding the regulation of the digital currencies market earlier in July. The Fed Chair says the financial watchdog "has no intention to ban" cryptocurrencies like bitcoin (EXANTE: Bitcoin) or stablecoins.

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