By Anushree Dave
In a segment on CNBC on Tuesday morning, Michael Novogratz, CEO of digital asset and blockchain lender Galaxy Digital /zigman2/quotes/205842391/composite BRPHF -2.78% , discussed the Federal Reserve’s interest rate hikes and what they mean for crypto markets with Barry Sternlicht, chairman and CEO of Starwood Capital. They were also joined by Richard Buery, CEO of Robin Hood, the anti-poverty organization.
“When Powell started beating inflation over the head with a sledgehammer, of course bitcoin came back down as did lots of assets,” Novogratz said, arguing that if the Fed were to back off on the pace of tightening as some market observers contend is justified, bitcoin and other assets would rebound.
The price of bitcoin /zigman2/quotes/31322028/realtime BTCUSD +0.26% , which was at a high of around $69,000 in November of last year, was trading around $20,000. In general, cryptocurrencies have suffered a comedown since last year, with a loss $2 trillion in value since its height in 2021. This prompted investors to discuss the possibility of a “crypto winter” or a prolonged bear market.
Bitcoin and other crypto-related assets were trading higher Tuesday, while stocks rallied sharply for a second day amid speculation the Fed could begin to cool the pace of tightening as the economy slows and fears of potential financial instability rise. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.45% was up more than 700 points, or 2.4%, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.03% advanced 2.8% and the Nasdaq Composite /zigman2/quotes/210598365/realtime COMP -0.52% rose 3.3%.