Reuters/Rick Wilking
- If Joe Biden wins the presidency and Republicans hold the Senate, both stocks and Bitcoin will benefit, Galaxy Digital CEO and investor Mike Novogratz said on CNBC’s Squawk Box on Wednesday.
- “The markets are liking this,” Novogratz said about the potential for a conservative Senate and an end to President Trump’s “chaos.”
- Novogratz added that if a divided US government fails to pass more fiscal stimulus and the Federal Reserve steps in to shore up financial markets, Bitcoin and other cryptocurrencies could gain.
- “Less fiscal, more Fed, good for crypto,” he said.
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Stocks and Bitcoin will do well if Joe Biden wins the presidency and Republicans hold the Senate, Galaxy Digital CEO and investor Mike Novogratz said on CNBC’s Squawk Box on Wednesday.
“The markets are liking this,” Novogratz said about the prospect of a mostly conservative Senate and the end of President Trump’s “chaos.”
“Stocks are gonna do well,” the former hedge-fund manager continued. “People are gonna feel really comfortable” about the nation’s apparent rejection of far-left politicians, he added.
Novogratz predicted the tech-heavy Nasdaq index would outperform, as a Republican-controlled Senate would be less likely to impose new regulations on the nation’s largest technology companies, or break them up.
Indeed, Apple, Amazon, Facebook, Google-parent Alphabet, and Microsoft shares all rose as much as 4% in pre-market trading on Wednesday.
Novogratz, a vocal Bitcoin bull, also suggested a conservative Senate and less fiscal stimulus would be good for cryptocurrencies. "Less fiscal, more Fed, good for crypto," he said.
"We have crossed the Rubicon in its adoption," he continued, pointing to PayPal's recent decision to allow the use of Bitcoin on its platform starting next year. "We're at the start of a really big bull market there."
"You're going to have every central bank issuing a digital currency within the next five years," he added.
Bitcoin was one of the best performing assets earlier on Wednesday, having rallied by as much as 3.5% to a high above $14,000, before retreating to around $13,870.