In a recent appearance on Bloomberg, Novogratz spoke about his investments in stocks and bitcoin.
Returning to normal will be difficult and the consequences of this economic hangover will be severe. For this reason, according to the millionaire, bitcoin remains an interesting investment.
Novogratz’s distrust of the stock market is concrete. On Friday, part of his positions in the stock market were sold and so now his capital is in a short position.
“I’m selling into the Fed’s last big bazooka of buying high yields”.
It is clear from his claims that the new position is not structural, but tactical. In this sense the strategy is typically that of those who are still waiting for strong declines by increasing their liquidity in fiat currency.
Liquidity will be used to buy back the most solid and promising assets at rock bottom prices when panic is at its highest and prices at its lowest.
“We are seeing debt monetization as we have never seen it in our whole life”.
This problem is not only American, it is bringing together all the world’s major industrial powers, their economies and currencies. In the long run, assets such as gold and bitcoin, according to the American investor, will be positively affected.
In response to the doubts as to whether Bitcoin has been promising an increase, Novogratz responds as follows:
“Only in the last year Bitcoin has become a great weapon and a choice within everyone’s reach, in the last month I have seen hedge funds and private investors buy and take this risk for the first time”.
Store of value has always been a matter of trust, bitcoin is relatively young compared to the great economic and technological cycles of history. It is a tech in the process of growth and adoption.
The cause of price falls could be assimilated to the pressure of sales in the Asian world, especially of small savers, while the accumulation is to be found in the interest of new market players.
As is known to all those who follow the news in the crypto world, many frauds and Ponzi schemes from China have accumulated cryptocurrencies and sold the stolen funds on the market.
This and other factors could have been the cause of some heavy sales that caused the Bear market to continue.
Similar to Novogratz also Barry Silbert with his Digital Currency Group and Blythe Masters, former CEO of J.P. Morgan with Grayscale, are on the list of the great traditional investors who believe in this new paradigm.
This is the first generation, but many others are taking an interest after the first shock of what is becoming an economic earthquake.