U.S. billionaire investor and bitcoinbull 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.
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.