In an interview with CNBC, Michael Novogratz said that the U.S. Federal Reserve will begin cutting interest rates as early as October. Before that, the regulator had been raising prime rates for almost a year to combat inflation.. And lower rates always attract investors to riskier and more profitable assets, including BTC, ETH and other cryptocurrencies.<br
“If things happen the way I think they will, cryptocurrencies will be out of reach in terms of returns. The economy will slow down – significant rate hikes in the past will not go away without consequences. The banking crisis will create problems for small businesses in obtaining credit, and this will increase the number of bankruptcies and unemployment. So the Fed will change its rhetoric, which will be a catalyst for growth for many assets, but especially for gold, silver, bitcoin and ether,” says the CEO of Galaxy Digital.
Novogratz had already said in April that a decline in U.S. benchmark rates would have a positive effect on the bitcoin exchange rate. At the time, he predicted that if the Fed cut interest rates, the price of the first cryptocurrency would rise to $40,000.<br