Howard Lutnick, the CEO of Cantor Fitzgerald, has expressed his admiration for Bitcoin (BTC) during a recent interview. Lutnick cites the halving cycle and the decentralized nature of Bitcoin as key factors contributing to its widespread popularity. In a conversation on CNBC’s Money Mover podcast, Lutnick discusses various topics including inflation, the Federal Reserve’s response through interest rate cuts, cryptocurrencies, stablecoins, and their driving forces.
Lutnick starts by proclaiming his support for cryptocurrencies in general and then proceeds to highlight specific digital assets, particularly Bitcoin. He emphasizes the significance of Bitcoin’s halving cycle, which occurs every four years, making it increasingly difficult to obtain the asset. This scarcity serves as a substantial utility for the crypto community. Lutnick points out that historically, whenever Bitcoin goes through a halving, its price surges, gaining bullish momentum and recovering losses. This trend has been particularly evident in recent months, following a bear market that severely impacted traders and miners.
During the past few months, miners faced operational losses as the price of Bitcoin plummeted, forcing many to sell their BTC reserves and equipment to stay afloat. However, in a positive turn of events, the price of Bitcoin has experienced significant growth, leading mining firms to generate substantial profits and improve efficiency in preparation for the upcoming halving event.
Furthermore, Lutnick highlights the decentralized nature of Bitcoin as a major driving force for its adoption among institutional investors. He describes Bitcoin as an alternative that provides a sense of freedom in light of current economic circumstances. As a result, the digital asset market has witnessed significant inflows, with the potential approval of a spot Bitcoin ETF by the Securities and Exchange Commission (SEC). Investments in related products have already surpassed $1.7 billion this year, demonstrating renewed interest after a slow start.
On the topic of altcoins, Lutnick dismisses them as having limited or no utility, with the exception of Ethereum (ETH). He states, “These other coins, they are not a thing. They’re kind of make-believe, maybe Ethereum is okay.”
Lutnick also expresses his admiration for the stablecoin issuer Tether, emphasizing his ownership of their treasuries, which are currently valued at over $90 billion. He exclaims, “I’m a big fan of this stablecoin called Tether… I hold their treasuries. So I keep their treasures, and they have lots of it. They’re over $90 billion now, so I’m a big fan.”
Overall, Lutnick’s perspective on the market reveals his belief that there will not be significant rate cuts by the Federal Reserve in the coming year. He expects the banking and tech sectors to perform well, while the real estate market may face challenges.
