Bitcoin bull Mike Novogratz warns Jerome Powell's second Fed stint could bring pain for crypto prices

Mike is a big name in the world of digital currency.

The photo was taken by John Lamparski.

The Fed Chair could be about to slow down the market now that he's been nominated for a second term.

The macro story has changed a little bit and people are getting pretty bearish on cryptocurrencies.

"Powell gets reappointed, and so maybe it allows him to act more like a central banker than a guy that wants to be reappointed," he said on CNBC's "Crypto Night In America."

He said that inflation is showing up in bad ways in the US. Is the Fed going to have to move faster?

All assets would be slowed down by that. It would slow the market. If we have to raise rates much faster than we thought, it would slow down the market.

Powell was nominated for a second term as Fed chair by President Joe Biden.

Powell oversaw the biggest monetary stimulation in US history to help the economy deal with the coronaviruses crisis.

The strongest inflation in 31 years has the Fed grappling with it. The minutes from the last monetary policy decision show that officials are open to scaling back quantitative easing even faster.

Wall Street is getting in on the digital asset craze, from trading futures to teams.

The Fed could raise interest rates in May, according to financial markets.

The flood of money from the Fed in the last year and a half has lifted a number of assets, including cryptocurrencies such as ether and dogecoin.

It looks like it won't hit $100,000 by the end of the year, as predicted by the man. On the Bitstamp exchange, the price of Bitcoins was up 3.83% on Thursday.

The former hedge fund manager, who now runs a digital asset investment company, said there is still a lot to be excited about.

The amount of institutions that are moving into this space is staggering. I was on the phone with one of the biggest wealth funds in the world, and they decided to put money into the new technology. He said he had the same conversations with big pension funds in the US.

Business Insider has an original article.