Mike Novogratz believes in it.
The billionaire is convinced that bitcoin will experience a new Golden Age soon. There is no doubt for him.
Once the Federal Reserve takes a break from its monetary tightening, bitcoin will resume its march forward, according to Novogratz, whose company Galaxy Digital invests heavily in digital currencies and the crypto sphere in general.
As the economy slows down and the Fed steps back, “bitcoin goes to the moon,” Novogratz said at the “Bitcoin 2022” conference in Miami, which kicked off on Wednesday, according to Bloomberg.
"Bitcoin goes to the moon," is a popular crypto catchphrase. Evangelists and fans of the famous cryptocurrency love to repeat it when they discuss bitcoin's future prospects. The same phrase often accompanies every bitcoin price jump.
“I go to bed and I pray that the stewards of the U.S. economy don’t screw it up,” Novogratz said, adding that he has Russian friends who have gone “bankrupt” recently.
“And so I really do pray that the dollar is going to be strong and it doesn’t go to infinity because bitcoin going to infinity means the rest of the Western world has really fallen apart,” he said, though bitcoin can reach his price targets “with stability in the West.”
Novogratz also repeated his call that bitcoin will eventually reach a price of $500,000 and eventually $1 million.
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A long Way to Go
Last month, the former banker said during a broadcast interview with Bloomberg that bitcoin will be valued at $500,000 per coin in five years.
To get there, bitcoin has a long way to go.
The crypto broke an all-time high of $69,044.77 per coin on Nov. 10. But since then, the price has fallen 36.3%.
Bitcoin, however, still represents 39.44% of the crypto market currently valued at $2.12 trillion, according to CoinGecko. Its market cap is estimated at $834.17 billion.
Novogratz's enthusiasm is known and can be understood and explained. His company, Galaxy Digital, specializes in digital asset, cryptocurrency and blockchain technology industry.
The firm is a global provider of blockchain and cryptocurrency financial services for institutions.
The prices of bitcoin and altcoins fell at the beginning of the year, but for the past few days they have been trying to rebound.
Bitcoin is currently trading between $44,000 and $47,000, but its price is still struggling to cross the symbolic threshold of $50,000.
This hesitation is no doubt due to the tone of the Fed, which weighs on the evolution of so-called risk assets such as tech companies. However, bitcoin seems to have been moving in tandem with the stock market and the stocks of tech groups for some time.
"Bitcoin is trading like a risky asset, trading lower alongside equities as Treasury yields surge," said Edward Moya, senior market analyst for the Americas with Oanda.
"The Fed’s gonna be aggressive here and that is going to be short-term trouble for risky assets like bitcoin. Bitcoin could see weakness towards the $40,000 level, with the $38,000 level providing major support," Moya said.
According to Bloomberg, Novogratz believed bitcoin could be in the process of disabusing itself from the relationship with tech stocks. Bitcoin’s purpose won’t be for purchasing everyday items, like shoes.
“It’s that I’m going to take some of my wealth and preserve and store it there,” he said. The coin, he added, is becoming a part of institutional portfolios.
