Galaxy Digital CEO calls the marginal cost of bitcoin in 2022

Mike Novogratz believes that BTC will not recover to its previous all-time high in the coming months

06.10.2022 - 06:45

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2 min

What’s new? Mike Novogratz, CEO of investment firm Galaxy Digital, said in an interview with CNBC that bitcoin has little chance of reaching its previous all-time high (ATH) before the end of the year. He stressed that the first cryptocurrency can still be a good store of value, but the chances of recovery are low in the coming months.

"When Powell started beating inflation over the head with a sledgehammer, of course #Bitcoin came back down as did lots of assets," says @novogratz. "If he gives up this fight, you're going to see Bitcoin and other assets take right back off." pic.twitter.com/pXTVowzl3t— Squawk Box (@SquawkCNBC) October 4, 2022

What other statements have been made? According to Novogratz, the US Federal Reserve System’s (Fed) rate hike gave a boost to inflation, and “bitcoin came back down as did lots of assets.” Should the Fed give up the fight and lower the key rate, it has a positive effect on the stock market and the value of BTC. In addition, the head of Galaxy Digital predicted that in the near future, bitcoin will trade in the range of $20 000 to $22 000, and the inflow of funds from institutional investors will slow until next year.

As of October 6, 06:40 UTC, the value of 1 BTC is $20 228, having gained 0,11% in 24 hours, according to Binance.

Mike Novogratz is an American trader and investor and former head of the Goldman Sachs branch in Latin America. After leaving the firm, he founded his own investment company, Galaxy Digital. At the end of the second quarter of 2022, the company had $1,7 billion in assets under management.

In late September, Mike Novogratz’s fund, called Institutional Ethereum Fund, bought $75,6 million worth of ETH. The purchase was made by 21 investors in the fund, each of whom invested at least $100 000. All funds were invested directly in Ethereum at a price based on the Bloomberg Galaxy Ethereum Index. Gemini, a cryptocurrency exchange, acted as custodian.

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