Galaxy Digital’s CEO, Mike Novogratz, has voiced that Bitcoin (BTC) will likely not reach its all-time high unless macroeconomic conditions shift. Speaking on Galaxy’s podcast, Novogratz indicated that Bitcoin’s movement would remain sideways until the Federal Reserve cuts interest rates, which could then propel BTC upwards.
CEO’s Bitcoin Comments
Novogratz expressed optimism that more favorable cryptocurrency regulations could help propel Bitcoin to new heights. He noted the resurgence of the narrative that the economy is slowing down, which could benefit Bitcoin. However, he emphasized that significant regulatory changes or Federal Reserve actions are necessary for BTC to surpass its previous high of $73,000.
The CEO also suggested that Bitcoin would likely trade within a range of $55,000 to $75,000, possibly closer to $57,000 to $73,000. He believes that the next upward movement might occur as elections approach, potentially prompting Federal Reserve Chairman Jerome Powell to lower interest rates.
What Factors Could Drive Bitcoin Up?
Novogratz highlighted the US federal government’s spending and increasing debt as another factor that could drive Bitcoin’s rise. He argued that poor fiscal policies and wasteful spending could make Bitcoin more attractive as “digital gold.” He pointed out that bad policymakers in Washington could ultimately be beneficial for Bitcoin’s value.
He stated that Bitcoin’s story mirrors gold’s rise, but it grows faster due to being a newer technology and commodity, which accelerates the adoption cycle.
Key Takeaways
Concrete Inferences:
- Bitcoin’s growth is contingent on macroeconomic conditions and regulatory changes.
- The Federal Reserve’s interest rate decisions are crucial for BTC’s potential rise.
- US government fiscal policies could also impact Bitcoin’s attractiveness as an investment.
- Bitcoin may trade within the $55,000 to $75,000 range in the near future.
Based on current market activity, Bitcoin remains volatile. As of the latest update, BTC is trading at around $66,950, struggling to maintain a price above $67,000. Bitcoin’s market capitalization is hovering over $1.3 trillion, though 24-hour trading volume has decreased by 34%, now standing at $19.4 billion.