Federal Reserve Could Be What Kills Crypto Rallies In 2022
2 min read

Federal Reserve Could Kill Crypto Rallies In 2022

By News Desk

Galaxy Digital’s Mike Novogratz thinks that Federal Reserve Chair Jerome Powell could be a threat to crypto’s bull run moving into next year.

Speaking to CNBC, the billionaire investors said that “the macro story has changed a little bit,” adding that Powell being reappointed by President Biden could allow him “to act more like a central banker than a guy that wants to be reappointed.”

Novogratz opined that the threat of out of control inflation could force Powell and the Fed to start raising rates and scaling down quantitative easing programs, which would ultimately be a drag on the prices of many assets, including crypto.

“We have inflation showing up in pretty bad ways in the U.S…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.”

Image via Shutterstock

While the Galaxy Digital CEO is cautious about the potential effect of future monetary policy on the digital asset space, he’s still been maintaining a bullish stance on the industry in general. According to him, institutional interest in crypto is constantly gaining momentum.

“The amount of institutions Galaxy sees moving into this space is staggering…I was on the phone with one of the biggest sovereign wealth funds in the world today, and they’ve made the decision on a go-forward basis to start putting money into crypto…I’ve had the same conversations with big pension funds in the United States.”

In addition, Galaxy announced yesterday that the crypto giant raised $500 million in new funds in the form of exchangeable senior notes. The notes will earn holders 3% interest and will mature in 2026.

According to Galaxy, the new capital will be used to accelerate growth initiatives across its business lines, as well as general corporate purposes.

Newsletter Inline

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

Latest Posts

Facebook Giving Up On Stablecoin Project? Execs Looking to Sell Assets

January 26, 2022 2 min read

South Korea Aiming to Control the Metaverse

January 25, 2022 2 min read
Explain Bitcoin and Crypto to your Family
Explain Bitcoin and Crypto to your Family

Explaining Bitcoin and Crypto To Your Family

January 25, 2022 16 min read

Former Goldman Sachs CEO Admits ‘Crypto is Happening’

January 25, 2022 2 min read

NFTs See Massive Growth Despite Crypto Market Downturn

January 24, 2022 2 min read
Biden Administration To Publish Government Strategy On Crypto
Biden Administration To Publish Government Strategy On Crypto

Biden Administration To Publish Government Strategy On Crypto

January 24, 2022 2 min read
Cardano Review
Cardano Review

Cardano Deep Dive: Info you NEED about Cardano and ADA

January 22, 2022 32 min read

Related Posts

Coinbase vs FTX
Coinbase vs FTX

FTX vs Coinbase Review

January 20, 2022 25 min read
Will Ethereum Flip Bitcoin in 2022
Will Ethereum Flip Bitcoin in 2022

Will Ethereum Flip Bitcoin in 2022?

January 17, 2022 23 min read
FTX vs Binance
FTX vs Binance

Heavyweight Bout of Crypto Exchanges: FTX vs Binance

January 15, 2022 15 min read
Bitcoin and Inflation - Is it Inflation Hedge
Bitcoin and Inflation - Is it Inflation Hedge

Bitcoin and Inflation: Is it an Inflation Hedge?

January 13, 2022 21 min read
GALA Games Review Everything You NEED To Know
GALA Games Review Everything You NEED To Know

GALA Games Review: Everything you NEED to Know

January 12, 2022 16 min read
Kadena Review
Kadena Review

Kadena Deepdive! The Blockchain Trilemma solved?!

January 9, 2022 18 min read
OpenDAO and SOS Token Review
OpenDAO and SOS Token Review

OpenDAO Airdrops SOS on OpenSea Community

January 7, 2022 14 min read