Crypto Billionaire Mike Novogratz Says Bitcoin Will Lead Market Recovery
The crypto billionaire states it largely depends on the Federal Reserve reversing interest rate hikes.
In a CNBC interview, cryptocurrency billionaire Mike Novogratz reiterated the thoughts he tweeted in May. He believes that Bitcoin will lead the next market rally and that it may rely on the Federal Reserve pausing or reversing its rate hike decision.
2) $BTC will lead the next rally when the Fed pauses/flinches. Good projects will follow suit. This industry will not go away. We are just adjusting to the popping of an asset bubble caused by the Fed. Building revolutionary tech and change isn’t supposed to be easy.
— Mike Novogratz (@novogratz) May 27, 2022
“Bitcoin will lead the markets back out of this Fed hike. The moment the Fed flinches, the moment (Jerome) Powell pauses because the economy’s really starting to roll over, you’re going to see Bitcoin explode north,” said Novogratz.
He continued to compare the current market to the 1970s with the example of Gold leading the recovery of the market and not stocks — the crypto billionaire believes BTC will do the same.
While Novogratz had hoped for a BTC range of $30,000-$50,000 USD this financial year, he said that the moment feels like it could just be a capital management scenario and that the market and related businesses will quickly resize and adjust accordingly.
Novogratz pointed to the recent Celsius asset freeze and Terra Luna ecosystem meltdown as reasons for the accelerated short-term correction of cryptocurrency assets and says he thinks the market is close to a bottom — targeting $20,000 USD as the floor for BTC and $1,000 USD as the floor for ETH.
In other Web3 news, Bill Gates says NFTs are “100% based on greater fool theory.”