In a segment on CNBC on Tuesday morning, Michael Novogratz, CEO of the Digital Asset and Blockchain lender Galaxy Digital BRPHF, discussed Federal Reserve interest rate hikes and what they mean for the criptocurrency markets with Barry Sternlicht, chairman and CEO of Starwood Capital. They were joined by Richard Buery, CEO of Robin Hood, the anti-poverty organization.
When Powell beat inflation over the head with a sledgehammer, it came back down as did many assets, according to Novogratz, who argued that if the Fed were to back off on the pace of tightening, bitcoins and other assets would rebound.
The price ofBTCUSD, which was at a high of $69,000 in November of last year, was trading around $20,000. Since its peak in 2021, cryptocurrencies have suffered a comedown, with a loss of $2 trillion in value. The possibility of a prolonged bear market or a winter of cryptocurrencies was discussed by investors. On Tuesday, stocks traded higher as the Fed waited for a second day to cool the pace of tightening as the economy slows and fears of financial instability rise, as investors rallied sharply. The Dow Jones Industrial Average DJIA, rose more than 700 points, or 2.4%, while the S&P 500 SPX, advanced 2.8%, and the Nasdaq Composite COMP, rose 3.3%. As companies and funds rise in value, Dow jumps 700 points.