U.S. billionaire investor and bitcoin bull Michael Novogratz said Tuesday that bitcoin is likely to continue to trade in a tighter range this year as the Federal Reserve begins raising interest rates.
“I don’t think bitcoin will go up significantly until we pause.”
Michael Novogratz
Novogratz noted that he had previously predicted that Bitcoin would trade in the $30,000 to $50,000 range this year. Bitcoin price hit $41,000 on Wednesday, but has now fallen back below $40,000.
Bitcoin surged to record highs last year, along with other risk assets, as the Federal Reserve provided pandemic-related liquidity, Novogratz said. Now that the Fed is about to tighten monetary policy, investors are reassessing the risks and the aftermath of the Russia-Ukraine war, he said.
“Bitcoin is a narrative story that draws people into the community. But when their house is on fire, it’s hard to bring in new people.”
Michael Novogratz