By
Steve Muchoki
April 17th, 2024
The billionaire investor also does not expect any mega bull runs in the crypto space this year due to the US Federal Reserve hiking interest rates.
Billionaire American investor and cryptocurrency mogul Mike Novogratz is pessimistic about the ability of Bitcoin to climb up again to the $30,000 mark any time soon. The founder and CEO of the cryptocurrency investment firm, Galaxy Digital, has revealed that he expects Bitcoin to remain ‘range bound’ for the moment after the recent price surge.
Speaking to reporters, Novogratz stated that he remains doubtful of any possibility of Bitcoin embarking on a bull run that will see its price touch the $30K mark again. The billionaire investor attributed the lack of significant institutional capital inflows as the main reason behind his assertion.
“Will Bitcoin get through $30,000 on this move up? We will see. I’m doubtful. I think we’re going to probably be in this range now. I quite frankly would be happy if we’re in the $20,000, $22,000, or $30,000 range for a while,” Novogratz stated in an interview.
“We’re not seeing huge institutional flows, to be fair, but we’re not seeing anyone back away,” he added.
The billionaire investor also does not expect any mega bull runs in the crypto space this year due to the US Federal Reserve hiking interest rates.
“With the Federal Reserve tightening rates, I don’t see the mania that we saw in 2021 or 2017 reigniting. The Bitcoin story is very much tied to the Fed, and we’re still in a really complicated scenario. The last few data releases have started saying well geez, maybe that crazy idea of a soft landing is possible. I’m still very skeptical of the soft landing, but the markets are telling you they’re believing in it and so acids are going up, I think the Fed’s going to be able to stop raising rates,” he stated.
Novogratz has remained bullish on Bitcoin in the long term. Earlier this year, the investor predicted that Bitcoin would potentially reach $500,000 within the next five years or so and highlighted its fast adoption pace and unique features such as being “tailor-made to being an anti-inflation store of value” and “easily transferable.”
In mid-June, Novogratz again delved into the state of the crypto market and claimed that, the Fed needed to “take its foot off the brake” for the market to rebound and Bitcoin to “trade well” by the fourth quarter.
The CEO of Galaxy Digital, however, expects Ethereum to take a giant leap this year. According to him, Ethereum will climb to $2,200 or above with regard to the recent momentum and the software upgrade leading to The Merge. The digital coin at press time was trading at $1,732, down 1.97% in the last 24 hours.
On August 8, Mike Novogratz’s Galaxy Digital announced that the company had incurred a loss of $554 million, more than double what it recorded in Q2 2021.
“The increase in loss was primarily related to unrealized losses on digital assets and investments in our trading and principal investments businesses, due to decreased digital asset prices, partially offset by profitability in our mining business,” the press release stated.
The company was one of the biggest investors in the Terra ecosystem. The collapse of Luna subsequently saw the company lose massive investments.