The world continues to face the consequences of the pandemic, and among the pending discussions is the issue of economic stimuli. In this case, the Secretary of the Treasury of the United States, Steven Mnuchin, spoke about the discussions in this country. Given this, Mike Novogratz’s statements were immediate, and as expected, he promoted Bitcoin again.
New stimuli in the US economy?
According to Steve Mnuchin, the US Treasury Secretary, lawmakers are working on another bipartisan stimulus package. However, the disagreement among lawmakers over the latest round of stimulus is in the amounts.
The truth is that the US government has already approved a $ 3 trillion deal and the Federal Reserve has become extremely dovish. However, the Secretary of the Treasury was about to receive a bipartisan proposal from the House of Representatives in these next few days.
Meanwhile, the secretary did not miss an opportunity to highlight what he considers economic resilience in the face of the pandemic. Mnuchin pointed out that the unemployment rate is 8.4%, which is much lower than the predictions that estimated 25%. Furthermore, he described the rebound as “excellent” and said the third quarter would be “very strong” although certain sectors of the economy need more work.
Novogratz takes the opportunity to promote Bitcoin once again
For his part, Galaxy Digital CEO Mike Novogratz said that in this context he loves cryptocurrencies. Mnuchin certainly did not promise that they would reach an agreement and admitted that “politics gets in the way.”
According to Mike Novogratz, Mnuchin did a “very good job of describing what is happening in the economy”, but took the opportunity to remember the safeguard he has in cryptocurrencies. He agreed that the economic rebound has been faster than expected. But, he also added that there are sectors of the economy that are still suffering, such as restaurants.
In addition, he mentioned that financial markets have done very well, with the Dow Jones Industrial Average and S&P 500 practically unchanged during the year. For its part, the Nasdaq has risen 20%, despite the stimulus.
However, the interesting thing is that Novogratz stayed true to its principles of financial safeguard, reminding the world that it still has investments in gold and that it considers cryptocurrencies as a hard asset. In this sense, he was able to highlight Bitcoin.
In the medium term, this businessman hopes that if Joe Biden wins the election, the stock market will go down. This is because the Democratic candidate plans to increase taxes on capital gains. For this reason, with more reason, Novogratz highlights the benefits of gold and cryptocurrencies such as Bitcoin.
However, if the correlation between what happens in the stock market and the cryptocurrency market remains as it is now, Novogratz’s words may not be as definitive as they seem.