The United States is headed for a credit crunch and now is the right time to buy gold, silver and Bitcoin (BTC), says Galaxy Digital founder and CEO Michael Novogratz.

“We are going to have a credit crunch in the U.S. and globally,” Novogratz said in an interview on CNBC. “You want to be long gold and silver […] and you want to be long Bitcoin,” he said.

Speaking on CNBC’s Squawk Box on March 15, Novogratz noted that banks typically rebuild capital by lending less, meaning that a credit crunch is imminent, noting that indicators like the commodities market are already pointing to a recession.

The U.S. banking industry fell into turmoil this month, with Silvergate Bank, Signature Bank and Silicon Valley Bank all collapsing in the same week. Moody’s downgraded the U.S. banking system outlook to “negative.”

Related: Blame traditional finance for the collapse of Silicon Valley Bank

Novogratz told CNBC that a reversal in interest rate policy was in the cards, saying that while the Federal Reserve would “like to do a dovish hike, just for credibility’s sale,” doing so would be a “huge policy error.”

Alongside his prediction of tough times for the U.S. economy, Novogratz expressed a bullish sentiment for crypto, saying:

“If there was ever a time to be in Bitcoin and crypto, this is why it was created, in that governments print too much money whenever the pain gets too great, and we’re seeing that.”

The price of Bitcoin dipped after the collapse of Silicon Valley Bank last week but managed to reach new 2023 highs of $26,514.72 on March 14, according to CoinMarketCap.

Looks like Bitcoin is moving on from its risk asset days. As more and more people begin to understand its fundamental value case, the market is slowly turning to Bitcoin as a digital form of gold.

— Handre van Heerden (@Handrev) March 14, 2023