The cryptocurrency market has been following traditional markets lower since the start of the year, but one investor said crypto will lead markets higher on the other side of the Federal Reserve's most aggressive tightening cycle in more than 40 years.
What Happened: Galaxy Digital Holdings Ltd (OTC:BRPHF) CEO Mike Novogratz made a bold call on Bitcoin (CRYPTO: BTC) Tuesday on CNBC's "Squawk Box."
"Bitcoin will lead the markets back out of this Fed tightening," Novogratz said.
"The moment the Fed flinches, the moment, you know, Powell pauses because the economy is really starting to roll over, you're going to see Bitcoin explode north."
Why It Matters: Novogratz told CNBC that many of the crypto investors he talks to are planning to jump back into the market and start buying when they sense the Fed is going to pause.
Stocks often go down further when this happens, he said, noting that it was gold that led the markets back in the 1970s.
The Galaxy Digital CEO said he expects increased adoption from big companies to help fuel the recovery in crypto.
"I think every big brand, every big media company is going to use unique digital assets as part of their way to connect to community," Novogratz said.
He noted that he expects Bitcoin to bottom around $20,000 and Ethereum (CRYPTO: ETH) to bottom around $1,000.
From Last Week: Galaxy Digital CEO Mike Novogratz Shines Light On What's Holding Back Cryptocurrency Markets
$BTC Price Action: Bitcoin was down 2.29% over a 24-hour period trading at $22,501 midday Tuesday.
Photo: QuinceCreative from Pixabay.
