Bitcoin will “take off” again as soon as possible fed will stop tightening monetary policy. This view was expressed by Galaxy Digital founder Mike Novogratz during the Bitcoin 2022 conference in Miami, Bloomberg reports.

He predicts the central bank will remain “very aggressive” for a while due to high inflation. He believes that in the near future, the agency will raise interest rates by another 50 basis points.

But as the economy slows, the Fed will step back and “bitcoin will fly to the moon,” Novogratz said. He reiterated his predictions that digital gold will reach $500,000 and eventually $1 million.

However, the billionaire noted that the coin can achieve these goals with “stability in the West.”

“Before I go to bed, I pray that the executives of the American economy don’t screw things up. I really pray that the dollar is strong and bitcoin doesn’t rush forever. Because the opposite would mean the collapse of the Western world,” he said.

According to him, in the future, cryptocurrencies will not be used for payments, but as a store of value. The coin is increasingly becoming part of corporate portfolios, he added.

Novogratz’s assumptions about the Fed’s policy were confirmed in the published minutes of the ministry’s monetary committee’s March meeting. The Central Bank increased the interest rate by 25 basis points for the first time since December 2018.

It is clear from the document that many Fed officials are in favor of a one-off increase of 50 basis points, and this is reflected in the resolutions of the next meeting, which will be held on May 4-5.

Recall that in March Novogratz called bitcoin an alternative to fiat for residents of countries where the authorities pursue an inefficient monetary policy.