- Bitcoin hit a 10-month high on Tuesday amid broader gains in the cryptocurrency market.
- Mike Novogratz, CEO of Galaxy Digital, said the market is appreciating the Fed's rate hike and the slowdown in the US credit crunch.
- In an interview with CNBC, he said the recent bank failures have "revitalized" the original use cases for the cryptocurrency.
Galaxy Digital CEO Mike Novogratz said the recent rally in the crypto market is a signal to traders that the central bank and the U.S. credit crunch are easing.
In an interview with CNBC, the longtime bitcoin bull said that the rise in the value of the token shows that the cryptocurrency has long been used as a hedge against government monetary policy, such as the traditional banking system.
Novogratz told CNBC that Bitcoin's white paper, a document outlining its purpose, was released in 2008 during the Great Financial Crisis.
And today, even the recent bankruptcies of specialist lenders like Silicon Valley Bank and fears of a credit crunch have "refreshed the original story," he said.
“We are approaching a credit crunch in the US…what assets in an economic downturn are telling us something,” a former Goldman Sachs partner said of bitcoin, ethereum and gold.
"We're having a pretty constructive rally based on a lot of things... the market is very confident that (Fed) Chairman (Jerome) Powell is done or not," he continued, citing optimism that the tightening will end. . Fast
Of course, Bitcoin proponents often describe it as a hedge against inflation. However, cryptocurrency prices are very sensitive to the advancement of federal policy towards cryptocurrencies and other risky assets, with the prospect of softer policies to support these assets.
Cryptocurrency has been at its peak for most of the year. Bitcoin and Ethereum are up 68% and 37% respectively in the last three months. Bitcoin hit a 10-month high and topped $30,000 on Tuesday, according to Messari.