Investors and market enthusiasts pay great attention to the predictions made by prominent personalities.
Mike Novogratz, CEO of Galaxy Digital, is one well-known figure who has spoken out on Bitcoin’s potential future. Novogratz candidly warns in a podcast interview with Galaxy Digital that Bitcoin (BTC) is unlikely to hit new all-time highs unless there are major changes in the macroeconomy.
In the near future, Novogratz predicts that the price of Bitcoin will probably stay within a trading range of $55,000 to $75,000. If Bitcoin is going to surpass its prior high of $73,000, he said, major shifts in the macroeconomic climate are necessary. His specific point was that rate reduction by the Federal Reserve might be an important catalyst for Bitcoin’s price increase.
“I believe we’re within a range of approximately $75,000 to $75,000. Nearer $57,000 than $73,000 is the more accurate estimate. We’ve likely included the low and the high. I think we’re going to get closer to the election and [Federal Reserve Chairman Jerome] Powell is going to want to decrease rates,” Novogratz added, adding that he believes the next move is up.
Novogratz hinted that Bitcoin may do better if the economy were to slow down. But he emphasized that either the Federal Reserve must intervene by lowering interest rates or there must be a big change in crypto rules before Bitcoin can achieve substantial gains. Neither of these things is likely to materialize very soon, thus Bitcoin may keep moving in a sideways pattern.
“It’s great that the story of how the economy is slowing down is making a comeback. Until we see the Federal Reserve take action or a major regulatory breakthrough, I do not believe Bitcoin will break past the $73,000 high.” He went on to say that they are likely both low delta.
The growing national debt and expenditure by the United States federal government are two of the crucial elements highlighted by Novogratz. He thinks that more and more people will start to see Bitcoin as a digital gold standard due to the current economic climate. Novogratz claims that the factors that increase the value of gold also boost Bitcoin’s worth, but that Bitcoin’s adoption cycle and technology allow it to do so at a quicker pace.
“At this time, I will be discussing two topics: the debt and crypto regulation. Furthermore, they disagree with one another. Bitcoin wouldn’t do well under a Biden or Trump government that tackled the inefficient federal budget, which accounts for 26% of GDP instead of 20%, as pointed out by Novogratz. Therefore, it is fantastic for my wealth to have awful politicians, wasteful spenders, and populists in Washington. That is just Bitcoin’s history. Just like gold, bitcoin is seeing price appreciation. The adoption cycle is going quicker since we are a newer commodity and technology, hence our price has gone up faster.”
When considering possible price moves for Bitcoin, Mike Novogratz’s thoughts provide a more nuanced viewpoint. Even if the largest cryptocurrency could gain from rising government debt and macroeconomic uncertainty, it will likely take more drastic measures, like rate cuts from the Federal Reserve or new regulations, to bring its value to new all-time highs.
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