Mike Novogratz, the founder and CEO of Galaxy Digital, forecasts a dramatic rise in the value of Bitcoin (BTC) that could take the king of cryptocurrencies to previously unheard-of heights.
When reminded that he predicted Bitcoin would hit $500,000 by 2025, Novogratz states in a new interview with Bloomberg that he still thinks BTC might reach his lofty price objective, but adds that it would take longer than he originally anticipated because of shifting macroeconomic conditions.
Not in five years, and I’ll tell you why: [Federal Reserve Chairman] Jay Powell decided to find his central banking superpowers and start beating inflation over the head with a series of rate hikes that have brought rates from 0% to 4+%. This is the biggest change that occurred and the reason Bitcoin went from $69,000 down to the $20,000s.
It’s essentially that easy. We are currently hammering inflation over the head, which is why all assets, including bubbly and growing assets that were acting as “inflation hedges,” fell.
That is the main cause of the decline in cryptocurrency.
Considering that Bitcoin is now trading at $17,041, a move in the direction of Novogratz’s objective indicates an upside potential of 2,834% for BTC.
Novogratz predicts that cryptocurrency values will eventually rise once the sector has recovered from the damage brought on by the failure of businesses like crypto hedge fund Three Arrows Capital and digital asset lenders BlockFi and Celsius.
“The rest of this nonsense that we’ve had with firms like Three Arrows, BlockFi, Celsius, and all of these others that were either poorly run or fraudulently run is affecting the overall confidence in crypto, no doubt about it,” said the author.
However, this too will pass. They will be dismissed and consigned to history’s trash can. And after having gained experience, the industry itself will emerge stronger. And the price will start to decline once more.