Mike Novogratz, the CEO of Galaxy Digital, recently shared his insights on Bitcoin’s potential for reaching new all-time highs (ATH), emphasizing that significant changes in macroeconomic conditions are necessary for such a milestone. In a recent interview on Galaxy’s podcast, the billionaire — who is the 1368th richest person in the world with a net worth of $2.5 billion (as of 18 May 2024), according to Forbes — conveyed his belief that Bitcoin will likely maintain its current trading range until the Federal Reserve cuts interest rates, which he sees as a bullish signal for the leading cryptocurrency.
Novogratz highlighted that more favorable crypto regulations could also propel Bitcoin to new ATHs. He observed that the prevailing narrative about an economic slowdown could benefit Bitcoin. However, he remains skeptical that Bitcoin will surpass its previous high of $73,000 without intervention from the Fed or a major regulatory breakthrough—both of which he considers unlikely in the near term.
He outlined his expectation that Bitcoin will trade within a range of $55,000 to $75,000, more specifically between $57,000 and $73,000. Novogratz believes that both the low and high ends of this range have been established, and he predicts an upward movement as the election approaches and Federal Reserve Chairman Jerome Powell might consider rate cuts.
Additionally, Novogratz pointed to the substantial US federal government spending and increasing debt as factors that could drive more investors towards Bitcoin, viewing it as “digital gold.” He mentioned that while crypto regulation and national debt are conflicting factors, the latter might actually support Bitcoin’s rise.
He argued that if either the Biden or Trump administration tackled the federal budget deficit—which currently stands at 26% of GDP, significantly above the target of 20%—it would not bode well for Bitcoin. Conversely, he noted that poor policymaking and excessive government spending could be beneficial for Bitcoin’s value, paralleling the rise in gold prices but at a faster pace due to Bitcoin’s status as a newer technology and commodity.
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