Speaking at a conference hosted by Bank of America, Michael Novogratz said he would be the happiest person if 2022 ended with Bitcoin trading at $30,000. Novogratz said given Bitcoin’s price movement, the unrest of traders and the growing Lost Profits Syndrome (FOMO), he would not be surprised if the first cryptocurrency does indeed trade above this mark by the end of the quarter.
Novogratz's current forecast is much lower than what he has previously made.. Last year, the CEO of Galaxy Digital said that Bitcoin would reach $500,000 by 2025 if the US Federal Reserve (Fed) continues to raise interest rates.. Novogratz mentioned the recent increase in the key rate in the US by 0.25 percentage points, expecting that the regulator will not change its position in the near future.
“I doubt ours will have an explosive return to old highs this year because of Fed Chairman Jerome Powell.. He is really doing what he intends to do, and I don't think the Fed will cut rates anytime soon,” Novogratz said.
The current market capitalization of bitcoin is $476.8 billion.. Over the past day, the bitcoin rate has risen above $24,700, reaching a maximum since mid-August 2022. In order for Novogratz’s prediction to come true, by the end of March, bitcoin needs to grow by about 22%.
In January, a Galaxy Digital executive said that 2023 will not be an easy year for the crypto industry as it will have to face heavy regulatory pressure due to the bankrupt FTX exchange.