The founder of Galaxy Digital believes that in the current conditions, bitcoin can still be a good store of value, but by the end of the year it is unlikely to reach its previous heights.
Michael Novogratz has always been optimistic in predicting the price of bitcoin, despite the macroeconomic situation or the periodic market decline. However, speaking to a CNBC host, the cryptocurrency enthusiast expressed doubt that Bitcoin could recover significantly in the coming months. According to his forecasts, BTC will trade in the range of $20,000 to $22,000 per coin, with $30,000 being the ideal deal. Novogratz believes that capital inflows from institutional investors into bitcoin will also slow down, at least until next year.
The CEO of Galaxy Digital noted that even in the current market conditions, bitcoin can become insurance against inflation. Novogratz admits that the interest rate hike by the US Federal Reserve (Fed) has affected the price of the first cryptocurrency, but if the regulator softens its policy, this will favorably affect bitcoin and other crypto assets. Meanwhile, Bitcoin has already passed the psychological $20,000 mark, and its market capitalization is $385.4 billion.
“When Jerome Powell kicked off inflation, that sledgehammer hit bitcoin — along with other assets. If the Fed gives up the fight and lowers the key rate, this will have a beneficial effect on bitcoin and the entire stock market,” Novogratz said.
The billionaire recently said that he sees great potential in the decentralized finance (DeFi) sector, but the challenge remains to develop clear regulatory standards to reduce credit and investment risks.
Source: Bits
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