Novogratz Warns of Minsky Moment as U.S. Markets Signal Risk Off
Mike Novogratz, CEO of Galaxy Digital, stated in a CNBC interview that the "Minsky Moment" is approaching. Key points include:
- Tariffs are reshaping global security dynamics.
- President Trump's political return adds market uncertainty.
- Equities are down about 10% year-to-date, insufficient considering economic shifts.
- The current environment is risk-off.
- Bitcoin (https://holder.io/coins/btc/) typically thrives during macroeconomic stress unless risk appetite diminishes.
- Two narratives for bitcoin: macroeconomic trends and early-stage adoption.
- Bitcoin shows signs of trading independently of U.S. equities.
- The U.S. exhibits emerging market characteristics with rising interest rates and a weakening dollar.
- Novogratz warned that large deficits may soon impact markets negatively.
- Markets indicate that aggressive Trump-led policies are unsustainable.
- Even small increases in treasury yields could significantly affect the $35 trillion national debt.