Mike Novogratz Says 'We Are Heading Into A Really Fast Recession'

Billionaire and Wall Street veteran Mike Novogratz predicts that the economy will fall into a really fast recession.

"The economy is collapsing." "We are heading into a really fast recession, which is already evident in many areas."

– Novogratz declared on Wednesday

JUST IN: Billionaire Mike Novogratz says "the economy is going to collapse and we're heading into a really fast recession."

— Watcher.Guru (@WatcherGuru) June 16, 2022

Novogratz expressed his opinion shortly before the Fed announced the decision to raise interest rates. This is the highest interest rate increase in the country since 1994. According to Novogratz, the signs of a coming recession are rising inventories and a real estate market that has finally begun to decline after two years of soaring.

You might be interested in: The fall continues: the market capitalization of cryptocurrencies has already dropped below $ 900 billion

Mike Novogratz pointed out that the layoff rate is increasing

“There is a wave of layoffs going on in many industries and the Fed is stuck. "The central bank is in a position where it has to 'raise interest rates until inflation rolls over.'

As Mike said, layoffs have increased in the crypto industry and others. Coinbase, Gemini and BlockFi are downsizing due to tough market conditions.

Mike Novogratz had already predicted before the hike that the Fed would raise interest rates by 75 basis points, and the market should recover from the news. He also predicted that there would be a significant selloff in stocks in the coming days, which would plunge the market even deeper into the midst of a bear market.

However, Mike did not give a time frame for when the recession should occur. But he picked up on cryptocurrencies, saying they reminded him of the long-term capital management crisis of 1998.

The bear market took a heavy toll, with Bitcoin plummeting below the $20,000 mark. The entire cryptocurrency market seems to be in a slump. Speaking on CNBC about Bitcoin yesterday, Michael Saylor, CEO of MicroStrategy, said now is the right time to be staking the cryptocurrency long term.

Also read: The collapse of UST stablecoin was apparently caused by Terraform Labs itself

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.