Bitcoin Poised For Surge To $40k As Interest Rates Ease, Predicts Mike Novogratz

Mike Novogratz, the founder of Galaxy Digital Holdings Ltd., predicts that Bitcoin, Ether, along with gold and the euro, will surpass other investments as the Federal Reserve eases its interest-rate increases after bank failures.

Novogratz stated in a Bloomberg TV interview that he recommends long positions in these assets since they are likely to perform well.

Novogratz predicts a US credit crisis due to regional bank failures, resulting in fewer borrowers and a slower economy. The Fed may cut rates aggressively, starting by year-end. He believes that if interest rates drop, Bitcoin will benefit.

According to the interview, he remarked that Bitcoin experienced significant growth, citing its price of $30,000, which it attained for the first time since June 2022 when some companies like Three Arrows Capital failed.

He further stated that if the Federal Reserve operates according to his expectations, Bitcoin may stabilize at its current level before surging to $40,000.

Central bankers lowered their rate hike predictions following recent bank failures and are monitoring for possible credit issues that could further impact the economy.

Regarding stocks, Novogratz expects them to remain within a certain range due to their high prices and is not inclined to buy or hold them.

Moreover, as per Bloomberg’s report, US regulators are cracking down on crypto, but Hong Kong, Abu Dhabi, and Dubai are seeking crypto-friendly regulations, according to Novogratz.

Galaxy has hired six more employees in its Hong Kong office. However, the uncertain situation with Binance is a concern for crypto markets. Novogratz hopes for a negotiated settlement with a large fine for past KYC mistakes, which would be best for the crypto community.

Bitcoin Price Analysis

CoinMarketcap’s latest data indicates that Bitcoin is presently being traded at $29,917.88, having seen a modest 0.26% increase in daily gain and a substantial 8.37% increase in weekly gain.

Despite this, Santiment’s report suggests that Bitcoin remains above $30k as Thursday’s market transition begins. However, some traders are exhibiting indications of FUD. 

😨 #Bitcoin still hovers above $30k as markets transition to Thursday. However, traders are beginning to show signs of #FUD. Historically, this is a good sign for patient #bulls, as markets typically move the opposite direction of the crowd's expectation. https://t.co/pX7iqe6O2h pic.twitter.com/MuuKbJ8siw

— Santiment (@santimentfeed) April 13, 2023

This development could bode well for steadfast bulls, as market trends tend to move in the opposite direction of the general public’s sentiments.

Related Reading | Ripple Launches Liquidity Hub To Revolutionize Crypto-Fiat Bridge For Businesses