Mike Novogratz: Young people will buy Bitcoin with their welfare checks

„One of the most interesting things about the last grant was noticing how many people used this money to buy Bitcoin,“ comments Galaxy Digital CEO

While the United States is still deciding whether or not to give its citizens a $2,000 check to help them during this time of crisis, Mike Novogratz analyzed what the effects of this liquidity injection could be on the stock and cryptocurrency markets.

The CEO of Crypto Nation Pro discussed the issue during CNBC’s Squawk Box program. According to Novogratz, an additional $2,000 subsidy could be great news for the markets:

„A large percentage of this money will go into the markets. Certainly, when it gets into the hands of younger people, they will invest it immediately through Robinhood.

One of the most interesting things about the last grant was noticing how many people used this money to buy Bitcoin. […]

The market is sensing this, there is speculative excess everywhere. If you look at the glut of options bought for stocks like Tesla…. it’s pure insanity.“

Novogratz pointed to an increasing disconnect between stock markets and the real economy, as jobs have become precarious due to COVID and many Americans struggle to make ends meet. In his view, a breaking point will come sooner or later:

„You have to pay attention to the cracks. One day you will wake up and the markets will reverse. It’s going to be a very violent reversal, but I couldn’t say when it’s going to happen.“

This week Novogratz attributed Bitcoin’s recent rise to strong institutional interest, pointing out that PayPal and large U.S. insurers are buying large amounts of cryptocurrency. Currently, the price of BTC is around $39,100, up 34% from a week ago.

CEO of Ripple unveils some details of the legal matter with the SEC on Twitter

Brad Garlinghouse addressed some of the community’s biggest concerns about the SEC’s legal action against his company

Brad Garlinghouse, CEO of Ripple, revealed that the company tried, unsuccessfully, to reach a settlement with the SEC rather than settle the dispute in court. He also strongly criticized the „regulatory chaos“ created around cryptos:

„I’m not going to discuss the SEC’s unfounded accusations on Twitter, not least because, as you can imagine, after the lawsuit has started there are things that shouldn’t/can’t be said publicly. In any case, I’d like to discuss 5 key points from the case.“

In a recent Twitter thread, the CEO strongly denied „the SEC’s baseless allegations“ and said his company is „on the right side of the facts and history.“

Garlinghouse said Ripple will continue to work to try to reach a settlement with the SEC:

„Know that we have tried, and will try again with the incoming administration, to resolve this issue so that the XRP community can continue to innovate, consumers are protected and markets are preserved.“

In December, the SEC filed a $1.38 billion lawsuit against Ripple, Garlinghouse and co-founder Chris Larsen for selling XRP as an unregistered security. Since the lawsuit became public knowledge, more than 25 platforms including Coinbase, Bittrex, OKCoin and Bitstamp, have suspended trading or delisted the token.

Garlinghouse did not directly address whether Ripple has ever paid exchanges to list XRP, however, stating that it is one of the most liquid digital assets in the world and that 95% is traded outside of the United States.

The CEO was unable to answer the question regarding when the token would return to exchanges, pointing out that „Ripple has no control over the platforms where XRP is listed, and who owns it,“ calling the project open-source and decentralized.

Garlinghouse’s response, however, disappointed many readers who expected a little more information:

„You didn’t answer the question: did the company pay exchanges to list the token?“