Mike Novogratz stated on Wednesday that the cryptocurrency ethereum is attractive as a bet on the tech versus BTC’s appeal as an inflation hedge.
The cryptocurrency bull said ethereum is performing better than bitcoin as the Fed is attempting to tackle inflation.
He added that the U.S. economy is booming, and he thinks the markets will see a “Huge fourth quarter.”
Ethereum is outperforming BTC as the it becomes a less attractive option as an inflation hedge while the Fed. Reserve’s hawkishness has only just started leading into 2022, stated Galaxy Digital CEO Mike Novogratz during an interview on Wednesday.
With a max supply of 21 million, many traders have long seen the world’s largest crypto as a hedge against inflation, and especially in the face of the unprecedented easy money policies that were intended to help keep the U.S. economy afloat throughout the COVID pandemic. That might be challenged, however, as the United States’ central bank starts to turn hawkish to fight inflation next year.
Speaking on the CNBC network, Novogratz had stated that as BTC loses some interest from traders as a hedge against a currency that is devalued, ETH is outperforming as its proponents notice the possibility in the solutions that are enabled by the underlying tech.
“People see ETH as a tech bet,” Novogratz stated. While bitcoin has remained the most dominant crypto, its market share has fallen to about 40%, which is down from 70% as traders turn to other digital assets.
For Novogratz, ETH becomes a more promising crypto compared to bitcoin as the Federal government stops pumping large amounts of cash into the U.S. economy. The billionaire cryptocurrency bull said that in any event, he thinks it will have a “Huge fourth quarter” riding on the back of a booming economy.
He has also laid out what he thinks about a continuing bull run in the stock market, which he added are trading a lot more bullishly than crypto is.
“Equities are trading more bullish than cryptos are because you can see this tension, that the Feds are about to take the booze out of the punchbowl much earlier than we had expected,” Novogratz stated Wednesday during a interview with CNBC. “Broadly that should not be a good thing for risk assets.”
Author: Steven Sinclaire