Friday, June 21, 2024

In his second term, Fed Chair Jerome Powell may ‘slow crypto down’

Mike Novogratz, the billionaire investor and CEO of Galaxy Digital, was speaking to CNBC last week. According to him, Jerome Powell, the Chairman of the Federal Reserve, is likely, in his second term in office, to slow down the crypto market.

Jerome Powell was nominated for a second term to be the chairman of the Federal Reserve by President Joe Biden. During the Covid-19 pandemic, Powell was the Federal Reserve’s chairman. Powell had helped the US economy cope with the economic slowdown due to the lockdown, through the largest ever monetary stimulus.

Jerome Powell – Impact

Novogratz, in his conversation with CNBC, added that in the second term Powell is likely to act more like a central banker. Novogratz opined that with the current high levels of inflation in the US, the Fed would need to move faster. However, a delay on this was likely to slow down all the assets including crypto assets.

Analysts at FBB Capital Partners believe that a second term for Powell would provide crypto bulls with some confirmation bias. The crypto investors currently approach crypto as a hedge against loose Fed policy.

Other financial analysts believe that there is an overall uncertainty in the market over the direction of the market’s reaction without more Fed support.

Novogratz, however, remains optimistic about the crypto industry. He sees interest in crypto from sovereign wealth funds and pension funds.

The CEO of Microstrategy opined that bitcoin was likely to grow 100X and become a USD 100 trillion asset class. Surveys show that a large number of institutional investors and wealth managers are considering cryptocurrency as an investment option. The fear of missing out (FOMO) is driving many of these institutional investors towards bitcoin.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
RELATED ARTICLES

Most Popular