After a surprising disclosure regarding the United States’ interest payments, renowned billionaire investor and investing guru Mike Novogratz has once again emphasised his optimistic view on Bitcoin (BTC). Novogratz issued an emphatic plea on Twitter in reaction to recent revelations that the United States has reached an astounding $970 billion in interest payments, with an increase of $41 billion in Q2.
Experts worry that the rapid increase in interest payments in the U.S. economy might soon reach the $1 trillion threshold. An unsettling loop is being created as tax collections continue to fall short of the rapidly rising level of sovereign debt and interest payments are increasingly covered by the issuing of new debt.
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The well-known Bitcoin enthusiast Novogratz has frequently expressed his support for the digital currency. When the US national debt jumped alarmingly by $1 trillion between June and July, he recommended investors to buy BTC earlier this month.
Novogratz has a pessimistic perspective on the economy, but he is still upbeat about Bitcoin’s future. His research indicates that BTC is prepared for a new wave of development after a stabilisation phase between $28,000 and $32,000. However, he thinks that the Federal Reserve has to change its course significantly by starting to lower interest rates in order for this projected increase to materialise. However, recent occurrences suggest that the central bank has other ideas in mind.
It is still unclear how the American economy will do through the following brutal months of the recession and if Bitcoin will live up to Novogratz’s forecasts of stability and growth.
