Mike Novogratz, founder and CEO of Galaxy Digital, recently signed up for a Interview with Bloomberg Talk openly about the future of Bitcoin (BTC) price. According to him, it is not crazy to expect that sooner or later this cycle will begin again for a foreigner. gathering.

Bitcoin prediction

In the interview, Novogratz was reminded that he had predicted this in the past BTC It will reach $500,000. He calmly indicated that he still stood behind that prediction. However, it will take longer to file Bitcoin rate He will reach this magic point than previously thought. This has to do with the macroeconomic situation, which has changed dramatically.

Not in five years and I’ll tell you why – The biggest change happened and the reason Bitcoin dropped from $69,000 to $20,000 is because Federal Reserve Chairman Jay Powell decided to strengthen his central bank and reduce inflation. The pressure is through a series of price increases that have taken rates from 0% to 4+%.”

According to the billionaire, this is the main reason why the cryptocurrency market has fallen so badly. At the same time, this also means that he expects the market to recover quickly once the US central bank finishes raising interest rates, and may actually start cutting them again.

Encryption is back and stronger than ever

Of course, a lot of big cryptocurrency companies have also gone under recently. Some examples are Three Arrows Capital, BlockFi And the FTX. According to Novogratz, this caused short-term pain, but eventually the market will recover stronger than ever.

“The rest of this nonsense between Three Arrows and BlockFi and Celsius and all those companies that were poorly or fraudulently managed certainly detracts from the public confidence in encryption. But this too must pass. They will be swept into the dustbin of history. Lessons learned the industry will show itself stronger. And you will see that the price will rise again.”