🚀 Crypto Mike Novogratz Says Bitcoin Won’t Reach a New All-Time High Till This Happens

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Market enthusiasts and investors closely monitor the predictions of influential figures. One such prominent voice is Mike Novogratz, CEO of Galaxy Digital, who recently shared his insights on Bitcoin’s future trajectory. In a candid interview on Galaxy Digital’s podcast, Novogratz sends a cautious yet insightful warning: Bitcoin (BTC) probably won’t reach new all-time highs without significant macroeconomic shifts.

The Prediction in Detail​

Novogratz forecasted that Bitcoin’s price will likely remain within a trading range of $55,000 to $75,000 in the near term. He pointed out that substantial changes in the macroeconomic environment are essential for Bitcoin to break past its previous high of $73,000. Specifically, he mentioned Federal Reserve rate cuts as a critical catalyst that could drive Bitcoin higher.

“I think we’re in a bit of a range – $55,000 to $75,000. It’s probably closer to $57,000 than $73,000. We’ve probably put the low and the high in. I do believe the next move is up because I do think we’re going to get closer to the election, and [Federal Reserve Chairman Jerome] Powell is going to want to cut rates,” Novogratz stated.

The Impact of Economic Conditions​

Novogratz discussed how a slowing economy might benefit Bitcoin. However, he stressed that for Bitcoin to make significant gains, either the Federal Reserve needs to act by cutting interest rates or there must be a major development in crypto regulations. Both scenarios probably won’t happen soon, and Bitcoin may continue to trade sideways.

“There’s a resurgence of the ‘Oh my God, the economy’s slowing down’ narrative, which will be helpful. I don’t think Bitcoin will take out the old high, the $73,000 high, unless we get the Fed in action, or we get some big regulatory breakthrough. Those are both probably low delta,” he explained.

Bitcoin as Digital Gold​

One of the critical factors Novogratz pointed out is the influence of US federal government spending and the increasing national debt. He believes these economic conditions will drive more investors towards Bitcoin, viewing it as a digital equivalent of gold. According to Novogratz, Bitcoin benefits from the same forces that drive gold’s value up but at a faster rate due to its newer technology and adoption cycle.

“Right now, I talk about two things: crypto regulation and the debt. And they’re at odds with each other. If we had an administration, Biden or Trump, that addressed this 26% of GDP federal budget, which should be 20%, it would not be good for Bitcoin,” Novogratz noted. “And so having really crappy policymakers and profligate spenders and populists in Washington, great for my net worth. That’s just the story of Bitcoin. Bitcoin is going up for the same reason gold is going up. It’s gone up faster because we’re a newer technology, we are a newer commodity, and therefore the adoption cycle is happening faster.”

Mike Novogratz’s insights provide a nuanced perspective on Bitcoin’s potential price movements. While the biggest cryptocurrency may benefit from macroeconomic instability and increasing government debt, significant gains to new all-time highs will likely require more substantial changes, such as Federal Reserve rate cuts or major regulatory advancements.