Galaxy Digital CEO Mike Novogratz is warning that Bitcoin (BTC) is not likely to print fresh all-time highs (ATH) until macro conditions change.
In a new interview on Galaxy’s podcast, the billionaire says that Bitcoin will probably trade sideways until Fed rate cuts, which he believes would be bullish for the crypto king.
More favorable crypto regulations could also push Bitcoin to new ATHs, he says.
“There’s a resurgence of the ‘Oh my God, the economy’s slowing down’ narrative, which will be helpful. I don’t think Bitcoin will take out the old high, the $73,000 high, unless we get the Fed in action, or we get some big regulatory breakthrough. Those are both probably low delta.
I think we’re in a bit of a range – $55,000 to $75,000. That’s a pretty big range. It’s probably closer to $57,000 to $73,000. We’ve probably put the low and the high in. I do believe the next move is up because I do think we’re going to get closer to the election and [Federal Reserve Chairman Jerome] Powell is going to want to cut rates.”
Novogratz says another bullish factor for Bitcoin is the amount of US federal government spending and mounting debt, which he believes will lead more people to invest in BTC as “digital gold.”
“Right now, I talk about two things: crypto regulation and the debt. And they’re at odds with each other. If we had an administration, Biden or Trump, that addressed this 26% of GDP federal budget, which should be 20%, it would not be good for Bitcoin.
And so having really crappy policymakers and profligate spenders and populists in Washington, great for my net worth. That’s just the story of Bitcoin. Bitcoin is going up for the same reason gold is going up. It’s gone up faster because we’re a newer technology, we are a newer commodity, and therefore the adoption cycle is happening faster.”
Bitcoin is trading for $66,849 at time of writing, up 2.5% in the last 24 hours.
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