Bitcoin and crypto investor Michael Novogratz has said he expects the U.S. Federal Reserve to trigger a $200 billion bitcoin price boom later this year.
"The clearest trades have been and will continue to be long gold, long the euro, long bitcoin, long ethereum—these assets that should do well with the Fed stopping hiking and then cutting," Novogratz, the chief executive of bitcoin and crypto financial services company Galaxy Digital,This week, minutes from the Fed's March meeting suggest officials are on track to hike interest rates again next month while forecasting a"mild recession" later this year.
In early 2022, the Fed embarked on a program of interest rate hikes designed to cool inflation and began cutting its balance sheet to suck liquidity out of the system, dragging on higher-risk assets like bitcoin and technology stocks. However, the rapid hikes sparked a banking crisis last month, causing the Fed to dial back expectations of further increases and sparking a bitcoin, crypto and tech stock rally.
"Bitcoin had a huge run," Novogratz said, pointing to the bitcoin price recovery so far this year and adding:"We can consolidate here before moving towards $40,000, as long as the Fed plays out the way I think it’s gonna play out." An increase in the bitcoin price to $40,000 would add around $200 billion to the cryptocurrency's market capitalization that's currently just under $600 billion.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Crypto Mogul Novogratz Weighs in on Bitcoin (BTC) Crossing $30K MilestoneCrypto magnate Mike Novogratz shares his perspective on Bitcoin's recent breakthrough past $30,000 milestone in CNBC interview, attributing rally to crypto community and hedge funds
Read more »
Galaxy Digital's Mike Novogratz explains why bitcoin, cryptos are rallyingThe crypto market rally is built on hopes of Fed rate hike slowdown and looming US credit crunch, Galaxy Digital's Mike Novogratz says
Read more »
Novogratz Sees Bitcoin Hitting $40,000, Here's Key FactorMike Novogratz, renowned cryptocurrency investor and Galaxy Digital CEO, projects that Bitcoin could reach $40,000 if Federal Reserve ceases interest rate hikes and begins cutting rates
Read more »
'It's punitive': Electric vehicle owners could soon be taxed $200 annuallyProposed legislation would require electric vehicle owners to pay a $200 registration fee. It would cost $400 at the time of purchase. reportsbychar has more.
Read more »
Apple to invest another $200 million in carbon removal fundApple Inc said on Tuesday it doubled its financial commitment to a fund it had established two years ago to invest in projects that remove carbon from the atmosphere.
Read more »
OpenAI launches a bug bounty program for ChatGPT | EngadgetOpenAI launches a bug bounty program for ChatGPT
Read more »