Galaxy Digital CEO: If The Federal Reserve Lowers Interest Rates, Bitcoin May Reach $40,000
- According to the CEO, the top cryptocurrency Bitcoin might reach $40,000 if the FED lowers interest rates.
- He stated that the clearest trades have been and would continue to be long gold, the euro, bitcoin, and ethereum – these assets should perform well when the Fed stops hiking and subsequently reduces interest rates.
Galaxy Digital expressed his thoughts on the Bitcoin price related to the Federal Reserve interest rate adjustment.
Because of the recent bank failures, Galaxy Digital Holdings Ltd. CEO Mike Novogratz expects gold, the euro, and cryptocurrencies bitcoin and ether will outperform competing investments. Following a looming credit crunch, the Fed has eased into rate hikes.
In a media interview, Novogratz stated, “The clearest trades have been and will continue to be long gold, the euro, bitcoin, and ethereum – these assets should perform well when the Fed stops raising and then lowers interest rates.”
Novogratz It also stated that, as a result of the recent failures of several regional banks, lenders may reduce borrowers, perhaps resulting in a credit crisis in the United States, which will “slow the economy” and eventually push the Federal Reserve to lower interest rates more aggressively than projected. Will be cut for the first time before the end of the year; if rates fall further, Bitcoin will be in a “sweet spot.” He predicts Bitcoin will reach $40,000 if the Fed lowers interest rates.
One major unknown for cryptocurrency markets is how US regulators will deal with Binance. The Commodity Futures Trading Commission has filed a lawsuit against them. “My hope, and my bias, is that they will negotiate a very large fine for KYC mistakes that Binance made in the past, and Binance would pay their fines and move on,” he said, referring to “know your customer” standards.
Recently, Biticoin has made its new ATH, surpassed $30,000 right before the CPI rate adjust announcement.
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