Mike Novogratz seeks condition for new Bitcoin rally
- June 17, 2022
- 0
Once the US Federal Reserve (Fed) stops raising its key interest rate, Bitcoin will “lead” a new rally in the cryptocurrency market. This was stated by Mike Novogratz,
Once the US Federal Reserve (Fed) stops raising its key interest rate, Bitcoin will “lead” a new rally in the cryptocurrency market. This was stated by Mike Novogratz, president of Galaxy Digital, in an interview with CNBC.
“Bitcoin will lead the markets when the Fed pulls back. As soon as the regulator falters, bids will respond with explosive growth,” Novogratz said.
As a result of the meeting on June 14-15, the Fed increased the key interest rate range by 75 basis points to – 1.5-1.75%. Fed Chairman Jerome Powell also said the bar could be raised by another 0.5% to 0.75% in July.
Bitcoin prices reacted with short-term growth, but the price corrected the next day. At the time of writing, the initial cryptocurrency is trading around $21,217.
According to Novogratz, the Fed’s decision has raised some concerns about an impending recession, but investors won’t be in a rush to invest in higher-risk assets like bitcoin.
“Many of the guys I talk to assume they will take action when they feel the Fed is about to stall. As long as the regulator remains belligerent, it’s hard for any risk asset to really succeed,” he added.
The head of Galaxy Digital also acknowledged that, despite the diversification of the portfolio, the current crisis in the cryptocurrency market is “more painful” compared to previous bearish cycles. According to him, this is due to the rising cost of digital assets.
Galaxy Digital, led by Novogratz, became one of the investors of Terraform Labs, which developed the Terra ecosystem. And the senior executive strengthened this tattoo on his left arm, making it among the so-called “LUNAtics”.
He described the project as a “big idea that failed” after the collapse of TerraUSD and Luna.
In June 2022, Novogratz said that Bitcoin would not exceed $20,000 and Ethereum prices would remain above $1,000.
Recall that in April Novogratz already voiced the thesis about the resumption of the rally of the first cryptocurrency after the Fed’s monetary policy loosening.
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Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
