In a long battle over whether US citizens will receive a $ 2,000 incentive check to help them weather the economic downturn of the COVID-19 pandemic, Mike Novogratz has focused on what the news could mean for the stock and cryptocurrency markets.
The Galaxy Digital CEO spoke to Squawk Box on CNBC in the middle of a surreal image of Wall Street, apparently unconcerned about yesterday’s unrest at the Capitol. As reported in real time on Fox News yesterday, “Markets are gathering while protesters disrupt the electoral college votes.”
From Novogratz’s perspective, a new round of stimulus checks, of $ 2,000 each, which were recently approved by the House of Representatives, could be good news for the markets. Regarding the change in the composition of the Senate after the second round of elections in Georgia, he indicated that:
Many of these [incentives] will find their way into the market. Of course, when they do fall into youthful hands, they jump straight to their Robinhood accounts. One of the most unique things of late is knowing how many people have purchased Bitcoin with the specified amount of incentive. Explosions “.
“The market feels it all,” added Novogratz. As many working Americans continued to grapple with the economic turmoil and job insecurity exacerbated by the 2020 crisis, he indicated an optimistic sentiment among traders of all classes:
“The speculative glut is everywhere, when you look at the number of options being bought in a stock like Tesla, it gets crazy.”
However, this disruption is likely to cause problems at some point – even for those who are profiting from the crisis. “You have to pay attention to the cracks. One day we woke up and the markets started to turn, then capsized sharply. I don’t know when that will happen.”
Earlier this week, Novogratz attributed the unique rise in Bitcoin prices to the arrival of institutions, citing PayPal’s Bitcoin service, as well as the actions of major US insurers. At time of publication, the coin is trading at approximately $ 38,000, an increase of approximately 8.6% on the day.