Amid a tough macroeconomic scenario, Mike Novogratz is optimistic about his Bitcoin price forecast. Novogratz, the managing director of Galaxy Investment Partners, has long supported investing in Bitcoin (BTC). However, he does not believe that BTC can rebound massively by the end of 2022. Novogratz recently stated that there will be a slowdown in the flow of institutional investment in the crypto industry until next year. .
Bitcoin as an inflation hedge
The Galaxy CEO said he believes Bitcoin won’t break above $30,000 in the near term. He added that a BTC price in the range of $20,000, $22,000 or $30,000 would be ideal. In this context, Novogratz commented on the possibility of BTC acting as a hedge against inflation. Talk to CNBC on Tuesday, he said the Federal Reserve’s decisions to raise interest rates were affecting the price of BTC. If the Fed eases the rate hike pattern, there could be a bull run for Bitcoin and other assets, he suggested.
“When Powell started beating inflation over the head with a hammer, of course Bitcoin came back down and so did many assets. If he gives up this fight, you are going to see Bitcoin and other assets pull back immediately.
The Fed warned of the risk of recession
The United Nations Conference on Trade and Development has warned central banks, including the Fed, of recession risks. The agency said central banks risked a recession followed by prolonged stagnation if they continued to raise interest rates. Should a global economic recession occur, BTC may stand a chance of benefiting as a preferred investment choice. However, the leading cryptocurrency has yet to erase its correlation with traditional markets. Nevertheless, the Mike Novogratz Bitcoin price prediction could eventually become a reality if BTC deviates from other assets.
Meanwhile, BTC had after almost ten days breached the psychological barrier of the $20,000 mark on Tuesday. At the time of writing, the price of BTC stands at $20,000, up 3.39% in the last 24 hours, according to the price-tracking platform CoinMarketCap. Earlier in September, BTC hit a high of $22,540, after which there was a sharp decline.
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.