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It is time to buy gold and Bitcoin (BTC), according to Mike Novogratz, the CEO of Galaxy Digital. There are multiple issues that affected the markets in recent days, including the crisis that is affecting banks such as Silvergate Bank, Signature Bank and Silicon Valley Bank. In Europe, banks have also been affected, something that could continue in the coming days.

It seems to be time to buy gold, silver and Bitcoin according to Mike Novogratz, one of the largest supporters of the cryptocurrency ecosystem. During a recent conversation on CNBCs Squawk Box, Novogratz talked about banks, lending, the economy, and Bitcoin.

During the conversation, he compared the current situation in the market with 2018s rate hikes and how this could create a similar situation as back then. There is a combination of factors that are pushing the US economy into a credit crunch and that he believes are sending the US economy into a recession.

One of the ways to stop that is for the US Fed to stop hiking rates, otherwise, things could become more difficult for the economy. Additionally, he talked about how Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies in the market, have been moving in recent weeks.

When he was asked about a possible contagion to other banks, Novogratz said that if the Fed does not do something more consistent there could be more problems with regional banks, which could add more pressure to the whole banking system.

At the same time, Novogratz talked about a credit crunch and the implications that this could have on the economy.

On that matter, Novogratz said during the conversation:

Now you have a market that is gonna go into a credit crunch. How do banks rebuild capital? They lend less. And so, you are gonna see a credit crunch happening in the United States. This is starting to get priced in the markets in a dramatic way.

Furthermore, he mentioned that he would be long Bitcoin, Gold and Silver. He said that Bitcoin was also created for these types of situations and environments. Lets not forget that while traditional financial markets have been moving lower, Bitcoin and other cryptocurrencies turned bullish.

After the most recent situation with banks and the current volatile environment in traditional financial markets, Bitcoin skyrocketed and hit $25,000. Now, the largest cryptocurrency in the world is being traded above $24,000 according to data shared by CoinGecko.

At the time of writing this article, Bitcoin registered 0.7% gains in the last hour alone, pushing its price to $24,750 in some cryptocurrency exchanges. With this price, Bitcoins market capitalization is currently at $477 billion, showing its strength as the largest and most robust digital asset in the market.

Bitcoin was created back in 2008 and released in 2009 by Satoshi Nakamoto during the banking crisis in the United States that then hit the whole world. We have seen Bitcoin surge to $20,000 in 2017 and then reach an all-time high of $69,000 in November 2021.

With the current situation in traditional financial markets, Bitcoin has been moving higher, showing that there is a clear interest from individuals and investors to get access to it in difficult times. Banks are now experiencing large pressure and might need the help of central banks in order to be able to redeem all funds.

When it comes to gold, its price has been moving higher in recent weeks, pushing its price to over $1,920 per ounce. This shows that there is a clear interest not only in Bitcoin but also in this precious metal, as explained by Mike Novogratz. With the current crisis in the banking sector, it might be better to keep value in gold or Bitcoin. However, things could change at any moment, as the government might decide to take a regulatory decision that could impact the markets.

It will be very important to see how this week will finish ad Credit Suisse has also been affected in Europe and Swiss authorities are being pressed to take the necessary actions and stabilize the current situation.

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Mike Novogratz Says Its Time To Buy Gold And Bitcoin - UseTheBitcoin