Mike Novogratz, CEO of Galaxy Digital, warned about the economic repercussions of war while forecasting a robust performance for Bitcoin (CRYPTO: BTC).
What Happened: Novogratz, the billionaire founder of Galaxy Digital, took to social media platform X on Sunday to express his concerns about the potential financial implications of war. He also predicted that Bitcoin would continue its upward trajectory after a risk flush.
His comments were made in the backdrop of escalating tensions in the Middle East. "Wars cost $$$.... Praying we don't get a bigger one but after the risk flush, $BTC will resume its trend higher," Novogratz stated.
Wars cost $$$.... Praying we don't get a bigger one but after the risk flush, $BTC will resume its trend higher.
I pray cool heads prevail and this is not the start of a major regional conflict.
There are so many good things going on in the mid east, it's just tragic that...— Mike Novogratz (@novogratz) April 13, 2024
He also expressed hope for a peaceful resolution, saying, "I pray cool heads prevail and this is not the start of a major regional conflict."
Novogratz's remarks underscore his faith in Bitcoin's resilience during times of geopolitical instability. He also pointed out the positive developments in the Middle East, describing the current situation as "tragic".
Why It Matters: Novogratz has previously shown optimism about Bitcoin's performance. In April, he predicted a surge in Bitcoin and precious metals, driven by potential interest rate cuts, despite the lack of solid reasons for the Federal Reserve to do so.
He also emphasized the importance of hard assets for wealth building in an inflationary environment.
His recent comments come after a drone attack by Iran on Israel escalated tensions in the Middle East, causing a sharp drop in Bitcoin.
Furthermore, the upcoming Bitcoin halving event, which will reduce the block reward for mining new bitcoins by 50%, could potentially impact the Bitcoin mining industry.
Price Action: At the time of writing this article, Bitcoin is valued at $65,474.10, indicating a slight decrease of 0.46% over the past 24 hours. Nonetheless, the cryptocurrency has experienced a notable increase of 48.23% year to date, according to the data from Benzinga Pro.
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Benzinga Neuro, Edited by Kaustubh Bagalkote