Galaxy Digital CEO Mike Novogratz CNBC in his latest interview, global economic developments pose significant risks in the US markets pointed out, he said. Novogratz said that the tariffs applied have changed the global security structure and that the leaders who returned to the political scene create uncertainty in the market.
Effect of Global Economic Developments
Although the shares have dropped around 10 %since the beginning of the year in economic indicators, Novogratz suggested that this decline did not react sufficiently to global changes. While the tariffs applied to the increase in the risks existing in the markets, the uncertainty deepened with the reunion of the leading political actors.
Bitcoin and Financial Strategies
Novogratz said Bitcoin tends to perform positive performance during macroeconomic stress periods. Unless the risk appetite of investors is completely eliminated, the crypto asset could gain value. This is supported by a flow of capital from the Golden Rally and the US dollar to safe ports.
It was also emphasized that Bitcoin’s adoption process is still in the beginning and the interest of both corporate and individual investors is increasing. The fact that it starts to be traded independently of traditional stock market markets keeps hopes for the future of the BTC alive.
US risky economic policies
The increase in interest rates in the US economy and the weakening of the dollar lead to the country to exhibit similar behaviors to developing markets. This can be considered as a worrying combination that has not been seen for a long time.
Novogratz, “We are in an environment that is clearly risky.” Using the expression, he said that the markets were cautious.
Novogratz recalled the concepts of economist Hyman Minsky, said that the US debt levels will eventually become important. Although he can give great deficits for a long time, he reminds us that this luxury can end.
It was also pointed out that the policies led by Trump were not very aggressive and sustainable. Even small -scale treasury return increases may have great effects on national debt of $ 35 trillion, and may lead to questioning the financial discipline. He advised to meet with China, saying that similar comments were JPMorgan CEO Dimon, saying that the US’s global power could be in danger.
Investors and economic experts have agreed that existing developments can have long -term effects on market behavior. In the light of these data, the increase in risk factors in financial markets may reshape investment strategies.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
