Bitcoin’s recent positive price action has been linked to a slowdown in US inflation, and Mike Novogratz believes the price rally could continue until the end of March.
Mike Novogratz, CEO of Galaxy Digital Holdings, believes Bitcoin has potential
It could return to $30,000 or above before the end of March.
According to a February 15 Bloomberg report, Novogratz spoke at a Bank of America conference the same day and said he would be the “happiest kid” if 2022 ended with BTC at $30,000, but added:
“When I see the price action, when I see the excitement of the clients calling, the FOMO building, it wouldn’t surprise me if we were at $30,000 by the end of the quarter.”
This prediction is much lower than other predictions Novogratz has made in the past. Galaxy’s CEO once believed that Bitcoin could reach $500,000 by the end of 2027 if the US Federal Reserve continues to raise interest rates.
During Wednesday’s conference call, Novogratz again referred to a rate hike by Fed Chairman Jerome Powell, who recently announced a 25 basis point interest rate hike on Feb. 1. :
“What makes me skeptical that we can get explosive highs this year and get back to the old days is President Powell. He’s really doing what he says he’s going to do, and I don’t see the Fed changing direction. And doesn’t seem to be cutting back anytime soon.”
Along with the Fed’s February rate hike, Powell suggested that inflation in the U.S. is beginning to ease, causing bitcoin to briefly rise above $24,000 before falling below $22,000.
Related: US Lawmakers Reintroduce Bill to Remove Barriers to Crypto Investments in Retirement Accounts
After the US consumer price index reading for January came in as expected on Feb. 14, bitcoin rose nearly 12% in 24 hours to surpass $24,700, its highest level since mid-August, according to Cinetelegraph data.
Sentiment toward cryptocurrencies also appears positive, with the Crypto Fear and Grade Index rising nine points to 62 out of 100, moving the scale from “neutral” to “greed” territory.
Bitcoin would still need to rise about 22% by March 31st to reach Novogratz’s predicted price.