Galaxy Digital CEO called the key condition for bitcoin’s growth

According to the billionaire, this will be facilitated by the US Fed’s policy easing

08.04.2022 - 10:00

352

1 min

What’s new? The price of bitcoin could rise significantly if the US Federal Reserve System (Fed) relaxes its policy on regulating the cryptocurrency industry. This opinion was expressed by the founder of asset management company Galaxy Digital, Mike Novogratz, during a speech at the Bitcoin 2022 conference.

News on the Bloomberg website

What arguments did Novogratz give? According to the billionaire, the US central bank will raise interest rates by 50 basis points soon and pursue an aggressive policy. However, as the economy slows down, the Fed will be forced to take a pause. After that, the price of bitcoin can reach $500 000 and subsequently come to $1 million per coin, Novogratz believes. However, for this to happen, there would have to be economic stability in the United States. The main value of bitcoin will be as a means to preserve value.

What had happened before? The analysts at US investment firm VanEck believe that bitcoin’s potential price could be between $1,3 million and $4,8 million if it becomes a global reserve asset. The experts came to this conclusion based on the global M0 and M2 money supplies.

Author: