Bitcoin price has been a topic of debate since the digital asset first made its entry into the mainstream over a decade ago. With its continued growth, a lot of people have come forward to proffer their predictions for the price of the cryptocurrency both in the long and the short term. One of those is billionaire Mike Novogratz. However, despite being usually bullish on the price of bitcoin, Novogratz does not seem to expect much in the short term.
Bitcoin Unlikely To Reach $30,000
Currently, the price of bitcoin is bouncing between the $23,000 and $24,000 level. This has seen a lot of speculation as regards what will happen when the digital asset is able to break out of this rut finally. For many, the recent recovery has led them to believe that there will definitely be a run-up back to $30,000, where the price had fallen from. However, not everyone seems to share this bullish short-term sentiment, and Novogratz is one of those.
The CEO of Galaxy Digital has been one of the many proponents of bitcoin, investing in the asset both on a personal and professional level. However, with bitcoin’s current trend, Novogratz does not expect a recovery. Mainly, he does not expect the asset to see $30,000.
BTC trending above $23,000 | Source: BTCUSD on TradingView.com
Novogratz explained during an interview with Bloomberg that he fully expected the price of the digital asset to continue to trend between $20,000 to $22,000, not believing that a break above $30,000 is possible with the recent run-up. “I’d quite frankly be happy if we’re in a $20,000 – $22,000 or $20,000 – $30,000 range for a while, with the next move breaking up,” he added.
Factors Dragging Down Bitcoin
There are a number of things that affects the cryptocurrency market and, by extension, the price of bitcoin. Recently, the news of the United States going into a recession has been the catalyst for the recovery trend, but Novogratz believes that the performance of bitcoin continues to be greatly tied to decisions by the government.
The Fed had once again increased interest rates which had affected the financial markets. With the current situation, any decision from the Fed has an impact on the digital asset due to its close correlation with the macro markets at the moment. But Novogratz believes that the Fed will stop raising rates, which is expected to have a positive impact on financial markets.
Despite not believing that the price of Bitcoin cannot touch $30,000 during this run-up, it has not changed the billionaire’s stance on bitcoin. He has previously stated that the price of the digital asset will grow to $500,000. His company also remains committed to its bitcoin strategy, holding a total of 16,402 BTC, making it the public company with the third-largest bitcoin holding in the world.
Featured image from CryptoPotato, chart from TradingView.com
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Author: Best Owie