Bitcoin will explode ‘north’ the moment the Fed glitches, says Novogratz
- Galaxy Digital CEO Mike Novogratz says Bitcoin is near the bottom.
- A ‘glitch’ from the Fed, a pause in rate hikes because the economy is ‘rolling over’ will be the trigger.
- Novogratz says the current crypto market is probably having a Long Term Capital Management ‘moment’.
Bitcoin price will rally hard the moment the US Federal Reserve begins to dial down on its aggressive monetary approach, Mike Novogratz, the CEO of Galaxy Digital said on Tuesday.
His comments come as the Fed begins its June meeting, with a 50 basis point rate hike on the table, but with market analysts pointing to a potential 75 basis point decision.
According to economists, last week’s inflation data, which showed consumer prices rising at the fastest pace since 1981, could tilt Jerome Powell and co towards the higher rate.
Novogratz reiterates bullish Bitcoin outlook
While BTC price is down 28% in the past week, and nearly 68% since its all-time high, Novogratz believes the benchmark cryptocurrency won’t stay in a downtrend for long. He told CNBC’s ‘Squawk Box’:
Bitcoin will lead the markets back out of this Fed tightening. The moment the Fed glitches, the moment Powell pauses because the economy is really starting to roll over you are going to see Bitcoin explode north.”
Bitcoin is close to a bottom
Bitcoin touched lows of $21,046 on Monday for its lowest price level since December 2020. It came close to tipping to the previous ATH. It could yet go another leg down and reach these levels. But according to the Galaxy Digital chief, the bottom is not that far.
On his view of the market, he says:
We are going through what feels to be a little bit like a Long Term Capital Management moment in crypto.”
Long Term Capital Management was a 1990s hedge fund, among the biggest at the time. When it collapsed, the impact hit the rest of the market.