Mike Novogratz is bullish about the future value of Bitcoin despite the current macroeconomic environment.
Recent Released: ESMA blames crypto for financial instability
Novogratz, CEO of Galaxy Investment Partners, has been an outspoken advocate for Bitcoin investments for quite some time (BTC). But he doesn’t think Bitcoin will have a huge comeback by 2022. Novogratz recently predicted that the influx of institutional investors into the cryptocurrency market will slow down until next year.
The Use of Bitcoin as a Hedging Instrument Against Inflation
The CEO of Galaxy has predicted that Bitcoin won’t rise above $30,000 any time soon. A BTC price of $20,000, $22,000, or $30,000 was suggested as optimal by him. Novogratz made a remark about Bitcoin’s potential use as an inflation hedge in this discussion. On Tuesday, he told CNBC that the Federal Reserve’s interest rate hikes were having an effect on the price of bitcoin. He speculated that Bitcoin and other assets could have a bull run if the Federal Reserve slowed its rate-hike cycle.
Bitcoin and other assets fell when Powell hit inflation like a sledgehammer, as expected. Bitcoin and other assets will quickly recover if he gives up this fight.
The Fed Issued A Warning About The Possibility Of A Recession
The UN Conference on Trade and Development issued a recession warning to central banks like the Federal Reserve. The agency warned that further interest rate hikes by central banks could increase the likelihood of a recession and subsequent prolonged stagnation. If there is a global economic downturn, Bitcoin may be a safe haven investment option. The leading cryptocurrency, however, has not yet severed its ties to the established financial system. However, Mike Novogratz Depending on how much Bitcoin deviates from other assets, the predicted price may come true.
Meanwhile, Bitcoin (BTC) finally broke the $20,000 psychological barrier after nearly ten days on Tuesday. According to data compiled by CoinMarketCap, the current price of bitcoin is $20,000. This is a 3.39 percent increase from where it was 24 hours ago. This September, Bitcoin skyrocketed to a high of $22,540 before plummeting.
Source: Google Trend