Although Bitcoin was introduced and received attention in 2008, the COVID-19 pandemic of 2020 was the moment when people realized the importance of cashless payments, and that brought digital currencies into the spotlight due to the economic crisis.
In October 2021, Bitcoin also hit an all-time high of $61,000. But the Bitcoin bulls have since slowly lost control as the flagship currency was blown up by a bearish pull. At the time of reporting, BTC price is down 4.01% in the past 24 hours and is trading at $43,472.
Bitcoin to go to the moon!
Although the world’s largest cryptocurrency by market cap is surrounded by roaring bears, in the early hours of today, at the ongoing Bitcoin 2022 conference in Miami, Galaxy Digital CEO Mike Novogratz said Bitcoin will only go to the moon if the US Federal Reserve is becoming less aggressive.
Cryptocurrency pioneer Mike believes the Federal Reserve will raise its default interest rate by half a point at its next meeting. This forecast is based on market expectations, as Bank of America’s Ralph Axel claims 73% of a fifty basis point increase in May.
According to the reports, the central bank raised its interest rates in mid-March for the first time since 2018 after taking a tougher stance amid inflation.
The March FOMC minutes of the meeting were released earlier today and the report shows the Fed’s most aggressive tightening cycle since 1994. However, Mike Novogratz expects an economic downturn in the near future that will force the Fed to reverse course. and shrink the balance sheet by $95 billion a month. Novogratz also claims that Bitcoin is a store of value as the currency is experiencing more institutional adoption.
Also Read: Here’s Why It’s The Right Time To Accumulate Bitcoin For The Long Term!
Novogratz Predicts Bitcoin Price To Reach $1 Million Level
The CEO of Galaxy Digital is seen as someone who strongly believes that Bitcoin will eventually reach the $1 million level. Also in the month of March, Novogratz had claimed that Bitcoin will increase its price to $500,000 in five years. This bullish forecast is based on the current Bitcoin adoption cycle.