According To Billionaire Mike Novogratz, Once The Fed Takes A Step Back, Bitcoin Will Soar.
Mike Novogratz, speaking on the first day of the “Bitcoin 2022” conference in Miami, ascribed the continued decline in Bitcoin’s price to the Central Bank’s hawkish tendencies, which he said was driving investor unrest.
Even as the Bitcoin conference in Miami began its third day, a dark cloud hung over cryptocurrencies toward the end of the week.
After falling off a cliff at the start of the week, Bitcoin prices continued to fall on Friday, April 8, and has already lost nearly $4,000. The flagship cryptocurrency is currently selling at $42,845/ BTC, with losses echoed across other cryptocurrencies, even as the market as a whole suffers with hundreds of millions of dollars in liquidations.
According to Mike Novogratz, this decline is expected to subside if the Federal Reserve takes a step back from its ambitious strategy to raise interest rates.
The crypto entrepreneur, speaking on the first day of the “Bitcoin 2022” conference in Miami, linked the continued decline in Bitcoin’s price to the Central Bank’s hawkish behaviours, which he blamed for creating investor unrest. If the Fed pauses its aggressive inflation-fighting program, he claims, “Bitcoin goes to the moon,” addressing the event’s over 25,000 participants.
In the March FOMC minutes, the FED indicated that it intends to increase US interest rates by a half-percentage point, implying that additional meetings may be held if inflation continues to increase. Furthermore, despite the fact that many top Fed officials expected the bank to raise its benchmark rate by 50 basis points in March, this did not happen, setting the tone for future meetings.
Mike Novogratz also stated that Bitcoin’s acceptance was rapidly approaching the “breakout phase,” predicting that it will hit $500,000 and eventually $1 million.
The dollar’s ‘risk-free’ currency label had been lost, according to the Galaxy Digital CEO, especially following the standoff between the US and countries like China and Russia, which had alleviating Bitcoin’s credibility.
Mike Novogratz said:
“The genesis of bitcoin was that it came out of a break in trust. Look at the foreign minister of China who just said we are not sure we can trust the U.S. dollar”.
Despite the currency plummeting to new record lows against the US dollar following sanctions, the Russian Ruble has staged a rebound and is already up against the dollar as of writing, indicating the dollar’s trailing influence on the global economy today.
Despite the fact that bitcoin has been unable to break beyond $48,000 and has returned to a tight trading range, there is a chance that it will outperform the market later this year if all macroeconomic conditions align in its favor.
Mike Novogratz also voiced confidence in Bitcoin’s price detaching from traditional stock indexes such as the Nasdaq 100, adding that Bitcoin’s purpose will be similar to that of gold as a store of value rather than a coin for everyday purchases. “I’m going to preserve and store some of my wealth there,” he explained.
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