Bitcoin and gold show loss of confidence in fiat, says Galaxy CEO

According to the founder and CEO of Galaxy Digital, Mike Novogratz, the recent Bitcoin rebound reflects much more than speculative trading, but rather a direct response to increasing macroeconomic instability and a change in global financial architecture.

Speaking on CNBC Squawk Box segment Wednesday morning, Novogratz Connected bitcoin (BTC) Recent performance with wider geopolitical and budgetary developments, including a sudden announcement of pricing policy, an increase in interest rates and an evolution of strategies in Washington.

The resulting uncertainty triggers a re-evaluation of traditional security and economic systems which are in place since the post-second World War era.

While Bitcoin generally works well during macro uncertainty, Novogratz noted the double nature of the asset. More specifically, it works both as a geopolitical coverage such as gold And as a risk -at risk that depends on the adoption of investors.

“Bitcoin is well done well with this type of macro-conditions, unless there is this type of risk,” he said, adding “and when there is chaos, new buyers disappear.”

Despite the progression of institutional adoption, retail participation has slowed down. The BTC market, according to Novogratz, has experienced more short -term trading than long -term accumulation recently.

Bitcoin vs Gold: Who buys what and why

Bitcoin and gold are both “bulletins on financial stewardship,” said Novogratz. In particular, recent performance of gold is a reflection of the decline in confidence in traditional Fiat systems. He stressed that foreign central banks, not retail or institutional investors stimulate the recent gold request.

He also predicted the emergence of a currency supported by BRICS, perhaps supported by gold, in the next 24 months. These movements underline a world change in dependence on the US dollar and Western monetary systems.

The United States act as an emerging market?

Novogratz warned that the American economy was starting to behave more like a emerging market than a developed market.

“I’m not saying that we’ve got there,” he said. “These are the first steps and it should make us all nervous. I’m sure she is the beasting secretary Nervous. I’m sure it’s, you know, people from the White House who understand this nervous. ”

He stressed the irony to pursue noble objectives such as reducing inequalities and deficits while undergoing long -term stability. It is not possible to simply “wish 30 years” of global commercial systems and supply chains “.