In an interview with CNBC, Michael Novogratz said that the US Federal Reserve will start cutting interest rates as early as October. Prior to that, for almost a year, the regulator raised base rates to combat inflation. And rate cuts always attract investors to riskier and more profitable assets, including BTC, ETH and other cryptocurrencies.
“If things happen the way I think, then cryptocurrencies will be out of reach in terms of profitability. The economy will slow down – large rate increases in the past will not go without consequences. The banking crisis will create problems for small businesses in obtaining loans, and this will increase the number of bankruptcies and the unemployment rate. Therefore, the Fed will change its rhetoric, which will be a catalyst for growth for many assets, but especially for gold, silver, bitcoin and ether,” said the CEO of Galaxy Digital.
In April, Novogratz already said that lowering the US base rates would have a positive impact on the bitcoin rate. Then he predicted that if the Fed lowered interest rates, the price of the first cryptocurrency would rise to $40,000.
Source: Bits
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