Fed's Monetary Policy Shift Could Boost Bitcoin, Gold, Silver: Galaxy Digital CEO

Galaxy Digital CEO Mike Novogratz predicts a surge in assets such as Bitcoin (CRYPTO: BTC), gold, and silver as the Federal Reserve reorients its monetary policy.

What Happened: Novogratz stated that a transition from a hawkish to a dovish stance by the central bank would unleash “animal spirits” on financial markets. He also mentioned that the US dollar has already begun to weaken in anticipation of a Fed pivot, Business Insider reported.

Despite his bullish views on the Euro, Australian Dollar, and Brazilian Real, the billionaire investor is shorting the Chinese Yuan due to structural issues in the economy. He holds a short position on the dollar, predicting a slowdown in the U.S. economy, easing inflation, and a potential reduction in Fed rates.

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Novogratz remains positive about gold, suggesting that if it stays above $2,000 for a few weeks, it could rise significantly. He also sees potential for silver to jump.

“Gold, silver, Bitcoin really all should do well if the Fed is finished hiking rates and starting to cut,” Novogratz said. He also believes several other factors will push Bitcoin beyond previous highs, including the likely approval of spot Bitcoin ETFs, a scarcity of sellers, and the upcoming halving cycle.

Political uncertainty due to the 2024 election could provide another boost for Bitcoin, Novogratz added. With fiscal instability in the US, Europe, and Japan, he believes this is “why people got invested in bitcoin in the first place.”

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