Michael Novogratz, the billionaire investor and the CEO of Galaxy Digital, a cryptocurrency merchant bank, said Bitcoin (BTC) is likely to remain in a trading range this year with the Federal Reserve raising interest rates. The Fed is expected to announce its first interest rate hike — likely by 25 basis points — since 2018 on Wednesday.
“I don’t think Bitcoin can rally aggressively until we get a pause,” Novogratz said during a TV interview on Bloomberg Crypto.
Novogratz noted that earlier this year he had projected a range of $30-50K for the apex cryptocurrency which surged last year to a record high of nearly $69,000.
As the Fed prepares to tighten, investors are re-thinking risk and valuations, along with the consequences of the Russia-Ukraine conflict, he said.
“Bitcoin is a narrative story, it’s bringing people into the community,” Novogratz said, noting that it is “hard to bring in new people when their house is on fire.”
As the Russian invasion on Ukraine escalates, so does its impact on the global economy and the market’s volatility. According to Novogratz, there’s “zero chance” that Moscow can use cryptocurrencies to evade Western sanctions — something some lawmakers have expressed concern about.
Senator Elizabeth Warren “is just wrong,” he said.
Novogratz also called for New York’s BitLicense, an experiment, widely criticized for impeding New York’s capacity to participate in the crypto sector’s boom, to be canceled.
“We got to get rid of the BitLicense,” he said. “It’s very difficult to do business in New York state” because of the requirement.
Bitcoin traded 0.82% lower at $39,380 at press time.
Reference: Bberg Crypto