Investor and founding CEO of Galaxy Digital Holdings, Michael Novogratz, foresees that the reduction of bond holdings that the United States Federal Reserve plans to initiate from May, could boost Bitcoin prices in the markets.
However, the billionaire crypto investor reckons the US central bank will remain “very hawkish for a while” under Jerome Powell to try to bring down inflation, with interest rates likely to be raised by 50 points.
Novogratz made his forecast during the “Bitcoin 2022” conference that kicked off Wednesday in Miami, sponsored by Mayor Francis Suárez, a crypto enthusiast who has vowed to turn the city into a major global hub for digital finance.
During his participation in the event that has attracted more than 25,000 people, Novogratz predicted that Bitcoin is heading towards $500,000 and could even reach a price of $1 million per token. “Bitcoin will go to the moon,” he said, and this will start when the Fed take a pause.
In the coming weeks, the US central bank will start drawing down its massive $9 trillion treasury stockpile. The objective is to try to combat the growth in prices, even if that means making loans more expensive for businesses and consumers.
Pray the Dollar Stays Strong
"I lie down and pray that the managers of the American economy don't screw it up," Novogratz said. He said he prays the dollar stays strong and BTC doesn't go to infinity, because when that happens "it means the rest of the Western world has collapsed."
He also said that many of his Russian friends have recently cracked down on Western sanctions on Russia after the invasion of Ukraine. Likewise, he added that “with stability in the West” the cryptocurrency can reach its target price.
Those who bet on the takeoff of Bitcoin and its usefulness in times of crisis continue to trust its performance this year. For some, it represents a hedge against high inflation, which is why they consider that it should not be missing from investment portfolios.
According to Novogratz, although Bitcoin trades on the tech-heavy Nasdaq 100, it is possible that ratio will decline over time. He points out that the purpose of Bitcoin is not to serve as an instrument of daily purchase in commerce, but its use as an asset of value in the long term.
That is, “I am going to take part of my wealth and keep it and store it there,” he stressed. For now, BTC is being snapped up by institutional investors as confidence in the cryptocurrency grows and the industry continues to grow.