America is headed for a credit score crunch and now could be the precise time to purchase gold, silver and Bitcoin (BTC), says Galaxy Digital founder and CEO Michael Novogratz.

“We’re going to have a credit score crunch within the U.S. and globally,” Novogratz said in an interview on CNBC. “You wish to be lengthy gold and silver […] and also you wish to be lengthy Bitcoin,” he mentioned.


Speaking on CNBC’s Squawk Field on March 15, Novogratz famous that banks usually rebuild capital by lending much less, that means {that a} credit score crunch is imminent, noting that indicators just like the commodities market are already pointing to a recession.

The U.S. banking industry fell into turmoil this month, with Silvergate Financial institution, Signature Financial institution and Silicon Valley Financial institution all collapsing in the identical week. Moody’s downgraded the U.S. banking system outlook to “unfavorable.”

Associated: Blame traditional finance for the collapse of Silicon Valley Bank

Novogratz informed CNBC {that a} reversal in rate of interest coverage was within the playing cards, saying that whereas the Federal Reserve would “love to do a dovish hike, only for credibility’s sake,” doing so could be a “big coverage error.”

Alongside his prediction of powerful instances for the U.S. economic system, Novogratz expressed a bullish sentiment for crypto, saying:

“If there was ever a time to be in Bitcoin and crypto, for this reason it was created, in that governments print an excessive amount of cash each time the ache will get too nice, and we’re seeing that.”

The value of Bitcoin dipped after the collapse of Silicon Valley Financial institution final week however managed to reach new 2023 highs of $26,514.72 on March 14, in keeping with CoinMarketCap.