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Billionaire Reveals Why Bitcoin Is Better Than Stocks
Here's Why Bitcoin Is Safer Than Stock Market, Novogratz Explains.
With only 35 days left for the 2020 presidential elections, Michael Novogratz, the CEO of Galaxy Digital, stated being deep in the stock market at this point is dangerous. Regardless of the greenback's recent increase, Novogratz said he is more bullish on Bitcoin and gold and skeptical with the U.S. dollars before the November event.
In an interview with CNN, Novogratz explained that the stock rally that the market witnessed in the last few months would shed steam soon. Pointing out that the highs in Tesla and Apple stocks have already been reached, it is now possible for the Nasdaq to trade lower, somewhere around 10,000 or another 11% down from the current levels, he added.
Novogratz clarified that the primary outside element for the high stock volatility is the upcoming elections. The billionaire stated that at some point, it would be okay to buy stocks. But that's not true currently, which would depend on who would win the elections. He also said he thinks Democratic candidate Joe Biden would win but the market may not enjoy it, citing some of Biden's campaign claims. "If Biden wins, he's raising taxes and he's raising capital gains tax, most specifically. The market is not going to digest that well," he highlighted.
Even though Bitcoin is said to be correlated with the stock market, Novogratz thinks the correlation won't last forever. "To illustrate, if the Nasdaq fell 5% today, bitcoin would probably be lower, not higher. But I think you are going to click here see those correlations break down," he told CNBC.
He also briefly touched upon quantitative easing measures, including printing more money to reenergize the economy in the middle more info of the pandemic. "We don't know what's going to happen, the level of uncertainty around the dollar and inflation has to be significantly higher than any in our lifetime sales," he said.
Gold and Bitcoin are often seen as hedges against inflation. Novogratz said he preferred Bitcoin because it's still very much earlier in the adoption cycle. He mentioned that while he thinks gold's read more price will continue to rise, he anticipates Bitcoin to increase to $50,000 in the next two years.