"Fed's rate cut will benefit Bitcoin, gold and silver!"

In the US, all eyes are on the Fed's interest rate decision. The general opinion is that the Fed will not raise interest rates; although the probability is low, it is thought that a rate cut is also a possibility.

It remains to be seen which investment instruments will be affected by a rate cut by the Fed and how.

Winners and losers of a possible rate cut Galaxy Digital CEO Mike Novogratz says Bitcoin, gold and silver should rise as the Fed cuts interest rates, but the Chinese yuan faces structural problems, Insider's Filip de Mott reports.

Mike Novogratz told Bloomberg TV that assets such as Bitcoin, gold and silver are likely to rise as the Fed changes its monetary policy. When the US Federal Reserve shifts from a hawkish stance to a dovish one, Novogratz said, it will stimulate euphoria in financial markets, while the value of the US dollar has already started to fall in bets with the possibility of the Fed changing its direction. The billionaire investor is still bullish on the euro, Australian dollar and Brazilian real, but says uncertainty remains high for the Chinese yuan, citing structural problems in the economy.

Gold, silver and Bitcoin Novogratz emphasizes that he is short the dollar, generally assuming that the US economy is slowing down, inflation is cooling and the Fed will start cutting interest rates. Novogratz remains optimistic about gold and underlines that if it closes above $2,000 for a few weeks, gold could go much higher from here. The billionaire investor adds that silver is similarly poised for a possible breakout. "If the Fed finishes raising rates and starts cutting rates, gold, silver and Bitcoin should perform really well," Novogratz predicts. Novogratz adds that a number of other factors will also propel Bitcoin to higher levels and potentially surpass previous records. These factors include the possible approval of spot bitcoin ETFs, a lack of sellers and the upcoming halving cycle. "Bitcoin is poised for a really great story," Novogratz says. The election year in 2024 will create more political uncertainty, which will create another positive headwind for Bitcoin, Novogratz says, adding: "With the US, Europe and Japan still not getting their financial structures in order, that's why people are investing in Bitcoin in the first place."