Galaxy Digital founder and CEO Mike Novogratz recently signed on to a interview met with Bloomberg candid about the future of the price of bitcoin (BTC). According to him, it’s not crazy to expect this course to start again for an alien sooner or later rally.
Bitcoin prediction
In the interview, Novogratz was reminded that he had predicted this in the past bitcoins would ever reach $500,000. She has calmly indicated that he is still behind this prediction. However, it will take longer before the bitcoin rate would have reached this magical point than he had previously thought. This has everything to do with the macroeconomic situation, which has changed significantly.
“Not in five years and I’ll tell you why – the biggest change that has occurred and the reason why Bitcoin has dropped from $69,000 to $20,000 is that Federal Reserve Chairman Jay Powell has decided to beef up his central bank and curb inflation pressure with a series of rate hikes that have taken rates from 0% to 4+%.”
According to the billionaire, this is the main reason why the cryptocurrency market has fallen so badly. At the same time, this also means that he expects the market to recover quickly once the US central bank finishes raising interest rates, and may actually start lowering them again.
Cryptocurrencies are coming back stronger than ever
Of course, many large cryptocurrency companies have also gone bankrupt lately. Some examples are Three Arrows Capital, BlockFi in FTP extension. According to Novogratz, this has caused short-term problems, but ultimately the market will bounce back stronger than ever.
“The rest of that nonsense between Three Arrows and BlockFi and Celsius and all those companies that were mismanaged or fraudulently run certainly detracts from the overall confidence in crypto. But this too shall pass. They will be swept away in the dustbin of history. And the industry itself will emerge stronger, thanks to the lessons learned. And you will see that the price will go up again”.
