Crypto bull Mike Novogratz warns the economy is going to collapse and the Fed is hiking rates as a bubble pops

• Galaxy Digital CEO Mike Novogratz told MarketWatch the economy is "going to collapse."
• "We are going to go into a really fast recession, and you can see that in a lot of ways," he warned.

Mike Novogratz expects the US economy to see a dramatic downturn as the Federal Reserve tightens monetary policy amid a bursting bubble.

"The economy is going to collapse," he told MarketWatch ahead of the Fed's Wednesday rate hike, accurately predicting its 75-basis-point rate hike.

"We are going to go into a really fast recession, and you can see that in a lot of ways," Novogratz added.

The Galaxy Digital CEO highlighted that the housing market is cooling fast, and retail inventories are mounting. While he didn't give an exact timeline on when a recession could hit, he suggested that the Fed won't be able to prevent one with policy maneuvers.

"The Fed is stuck," Novogratz said, and the central bank will have to "hike [interest rates] until inflation rolls over."

He added that the Fed is "hiking into the popping of a bubble."

On Wednesday, Fed Chair Jerome Powell said that a 75-basis-point rate hike won't be a common occurrence, though another large hike is likely to come in the July FOMC meeting.

He also reiterated his view that the US economy will see a soft landing but acknowledged that it will be harder and will depend on factors beyond the central bank's control. Additionally, the Fed expects to have weaker economic growth and higher unemployment.