Galaxy Digital founder and CEO Mike Novogratz is predicting a meteoric ascent for Bitcoin (BTC) that could push the value of the king crypto to heights never seen before.
Reminded that he predicted Bitcoin would reach $500,000 by 2025, Novogratz says in a new Bloomberg interview that he still believes BTC could hit his massive price target, but also notes that it would take more time than he originally expected as macroeconomic conditions have changed.
“Not in five years and I’ll tell you why – the biggest change that happened and the reason Bitcoin went from $69,000 down to the $20,000s is [Federal Reserve Chairman] Jay Powell decided to find his central banking superpowers and start bashing inflation over the head with a series of rate hikes that have taken rates from 0% to 4+%.
It’s pretty much that simple. It’s why all assets, why all frothy assets, growth assets that were that were ‘inflation hedges’ went down because we are in the process of beating inflation over the head…
That’s the main reason why crypto went down.”
With Bitcoin trading at $17,041 at time of writing, a move toward Novogratz’s target suggests an upside potential of 2,834% for BTC.
According to Novogratz, crypto assets will eventually rally once the industry emerges stronger after the harm caused by the collapse of firms such as digital asset lenders BlockFi and Celsius, as well as crypto hedge fund Three Arrows Capital.
“The rest of this malarkey that we’ve had with between Three Arrows and BlockFi and Celsius and all these companies that were either poorly run or fraudulently run certainly is hurting the overall confidence in crypto.
But this too shall pass. They will be brushed off into the dust bin of history. And the industry itself is going to emerge, having learned lessons, stronger. And you’re going to see that the price take back off.”