Galaxy Digital CEO Mike Novogratz cautions that Bitcoin (BTC) is unlikely to reach new all-time highs (ATH) until there is a shift in macro conditions. In a recent interview on Galaxy’s podcast, the billionaire predicts that Bitcoin will likely trade sideways until the Federal Reserve implements rate cuts, which he believes would be beneficial for the leading cryptocurrency. Novogratz also suggests that more favorable crypto regulations could propel Bitcoin to ATHs.
Novogratz states, “There is a resurgence of the ‘Oh my God, the economy’s slowing down’ narrative, which will be helpful. I don’t think Bitcoin will surpass the old high of $73,000 unless we see action from the Fed or a significant regulatory breakthrough. Both of these scenarios are unlikely.” He further adds, “I believe we are currently in a range of $55,000 to $75,000, with a more accurate range of $57,000 to $73,000. I think the low and high points have already been established. I do anticipate the next move to be an upward one because, as we approach the election, Federal Reserve Chairman Jerome Powell will likely want to cut rates.”
Novogratz identifies another bullish factor for Bitcoin, which is the increasing amount of US federal government spending and mounting debt. He believes that this will prompt more individuals to invest in Bitcoin as a form of “digital gold.” Novogratz explains, “Currently, I focus on two things: crypto regulation and the debt. These two factors are contradictory. If we had an administration, whether it be Biden or Trump, that addressed the 26% of GDP federal budget, which should ideally be 20%, it would not be favorable for Bitcoin. Therefore, having incompetent policymakers, excessive spenders, and populist leaders in Washington is advantageous for my net worth. This is the narrative of Bitcoin. It is rising for the same reasons that gold is rising. However, Bitcoin’s growth has been more rapid due to it being a newer technology and commodity, resulting in a faster adoption cycle.”
At the time of writing, Bitcoin is trading at $66,849, showing a 2.5% increase in the past 24 hours.
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