Galaxy Digital founder Mike Novogratz has recently shared his thoughts on the future of bitcoin’s price, stating that it could potentially reach $40,000 in the event that the US Federal Reserve decides to cut interest rates.
Novogratz is optimistic about the prospects of both Bitcoin and Ethereum, suggesting that they could outperform all other competing investments in the face of the Fed’s interest rate adjustments.
According to Novogratz, recent bankruptcies among a number of US banks have exposed the fragility of the financial system, and he believes that the regulator will be compelled to take measures to counteract the possibility of a credit crisis.
He warns that other lenders may follow suit and reduce the volume of loans they are issuing, which could result in a slowing down of the economy and potentially prompt the Fed to cut interest rates more aggressively than anticipated.
Novogratz is convinced that in the current climate of credit crisis, the most effective transactions will be in BTC and ETH, in addition to long positions in gold.
He believes that these assets will perform well as the Fed begins to ease its interest rate hikes.
He further emphasized that bitcoin and ether are here to stay, despite the recent crisis of confidence in the crypto industry.
In conclusion, Novogratz’s bullish predictions about the future of bitcoin and Ethereum’s price demonstrate his unwavering confidence in the long-term potential of these digital assets, particularly in times of economic uncertainty.