‘The economy is going to collapse,’ says Wall Street veteran Novogratz.

MarketWatch/Mark DeCambre/6-14-2022

graphic image of a red flag waving“They are hiking into the popping of a bubble.” – Michael Novogratz, CEO, Galaxy Digital

USAGOLD note: In a separate MarketWatch article, Novogratz likens cryptocurrencies’ meltdown to the LTCM implosion in 1998 that nearly brought down the entire financial system. We do not know the degree to which crypto positions are leveraged and what the impact that will have on the rest of the global markets should their rapid decline continue. Doubleline Capital’s Jeff Gundlach recently warned that bitcoin could go to $10,000. It’s at $22,500 as we post this comment.

UPDATE: Financial Times reports this weekend that crypto hedge fund Three Arrows – one of the biggest players in the digital currency space – has failed to meet margin calls. It goes on to cite problems with other crypto-entities as over-leveraged players deal with “a major correction in prices [that] is sending shockwaves through the ecosystem.” On Saturday morning, Bitcoin was trading just above the $19,000 mark and down almost 25% since Monday. Unmet margin calls can result in the liquidation of underlying positions further pressuring the downside.

 

Share
This entry was posted in Today's top gold news and opinion. Bookmark the permalink.