Bitcoin, gold, and silver should jump as the Fed pivots, but China's yuan faces structural problems, Mike Novogratz says
Lucas Jackson/Reuters
- Gold, silver, and bitcoin will benefit from a Fed pivot, Galaxy Digital's Mike Novogratz told Bloomberg TV.
- These assets will rise as the dollar is already starting to drop along with rates.
- But the billionaire investor is shorting China's yuan, citing structural problems with the economy.
Upside is coming for assets such as bitcoin, gold, and silver as the Federal Reserve shifts its monetary policy, Galaxy Digital CEO Mike Novogratz told Bloomberg TV.
When the central bank turns from its hawkish stance to a dovish one, it will release "animal spirits" on financial markets, he said, noting that the US dollar has already started falling on bets for a Fed pivot.
The billionaire investor added noted that he is still bullish on the euro, Australian dollar, and Brazilian real. However, he is shorting the Chinese yuan, citing structural problems in the economy.
Overall, he has a short dollar position, assuming the US economy slows, inflation cools, and the Fed starts cutting rates.
Novogratz is also upbeat on gold, saying that if closes above $2,000 for a few weeks, it could go much higher from there. Similarly, silver looks like it's being squeezed and is poised to jump too, he added.
"Gold, silver, bitcoin really all should do well if the Fed is finished hiking rates and starting to cut," Novogratz predicted.
He added later that a number of other factors will drive bitcoin higher, potentially past earlier records. This includes the likely approval of spot bitcoin ETFs, the lack of sellers, and the upcoming halving cycle.
"You really are setting up for a wonderful story," he said.
An election year in 2024 will also add more political uncertainty, providing another tailwind for bitcoin, Novogratz said. And with the US, Europe and Japan still unable to get their fiscal houses in order, that is "why people got invested in bitcoin in the first place."