Galaxy Digital CEO Mike Novogratz warned on CNBC’s Squawk Box that U.S. financial markets are starting to resemble emerging financial markets, due to growing policy uncertainty, rising interest rates and changes in global geopolitics.
Speaking in an exclusive interview, Novogratz also mentioned the recent market volatility following President Trump’s surprise announcement of tariffs, which caused Bitcoin (BTC) to skyrocket from $76,000 to $84,000. “This tariff came suddenly for many,” he said, adding, “It’s a huge shock to the global economy.”
Novogratz explained that the simultaneous restructuring of the global trade and security architecture that has been in place since World War II has caused a major shift in how the market reacts. “We are starting to behave more like an emerging market than a developed market,” he warned, pointing to an unusual combination of higher interest rates and a weaker dollar.
While Bitcoin has shown resilience, Novogratz noted that BTC is still struggling to gain adoption in times of increased uncertainty. “Bitcoin generally performs well in these macro conditions unless there is a strong risk-off sentiment,” he explained. “When there’s chaos, new buyers disappear.”
While gold rose as a haven asset, Bitcoin did not witness the same safe haven behavior. “Bitcoin and gold are scoreboards of financial management,” Novogratz said, arguing that gold’s current move reflects a weakening of confidence in traditional monetary policy.
According to Novogratz, foreign central banks are currently the biggest buyers of gold, predicting a BRICS-backed digital currency, which could be pegged to gold, will emerge within the next two years. “That’s a pretty big signal,” he added.
Novogratz said the current U.S. approach to tariffs and tariffs is confusing for investors. “We are destroying 30 years of trade planning and supply chains overnight,” he said. He acknowledged that reducing inequality and deficits were lofty goals, but warned of abrupt changes.
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