September 29, 2022

Novogratz called the condition for the further growth of bitcoin

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Bitcoin will “take off again” as soon as the Fed takes a break in tightening monetary policy. This opinion was expressed by Galaxy Digital founder Mike Novogratz during the Bitcoin 2022 conference in Miami, Bloomberg reports.

According to his forecast, the central bank will remain “very aggressive” for some time due to high inflation. In the near future, the agency will raise interest rates by another 50 bp, he believes.

But as the economy slows, the Fed will step back and “bitcoin will take off to the moon,” Novogratz said. He reiterated predictions that digital gold would hit $500,000 and eventually $1 million.

However, the coin can achieve these goals with “stability in the West,” the billionaire noted.

According to him, in the future, cryptocurrency will be used not in payments, but as a store of value. The coin is increasingly becoming part of institutional portfolios, he added.

Novogratz’s assumptions about the Fed’s policy were confirmed in the published minutes of the March meeting of the monetary committee of the department. The Central Bank raised the rate by 25 bp for the first time since December 2018.

It follows from the document that many Fed officials were in favor of an increase by 50 bp at once, which may be reflected in the decisions of the next meeting on May 4-5.

Recall that in March, Novogratz called bitcoin an alternative to fiat for residents of countries where the authorities are pursuing an inefficient monetary policy.

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