Crypto Mogul Says This Factor Is Key For Bitcoin to Reach $40,000
According to a Bloomberg report, Mike Novogratz, the founder of Galaxy Digital Holdings and a cryptocurrency investor, forecasted that Bitcoin might hit $40,000 with the Fed moving toward cutting the interest rate hikes.
Notably, the US Federal Reserve has maintained a hawkish stance in its fight against inflation by increasing interest rates. The last interest rate announcement was on March 23, when the Board of Governors of the Federal Reserve voted and approved an additional 25 basis point increase to the primary credit rate pushing it to 5%.
BTC Price Will Increase Following Interest Rate Reduction, Novogratz
In a recent Bloomberg Television interview on Wednesday, Novogratz made forecasts on BTC price increases. According to him, the “clearest” trades are long Gold, long Euro, long Bitcoin, and long Ethereum, all of which should profit from the Fed’s predicted policy shifts.
He referred to Bitcoin’s $30,000 price level this week, for the first time since June 2022, as a significant run. Novogratz expects Bitcoin to consolidate here before heading towards $40,000, as long as the Fed plays out the way that is expected.
On the contrary, he forecasts that shares will continue to be “range-bound” this year, pointing out that they are neither affordable to purchase nor extremely appealing to investors due to their high prices.
Further, Novogratz stated that Hong Kong, Abu Dhabi, and Dubai are pushing for crypto-friendly regulations while the US Securities and Exchange Commission is targeting the cryptocurrency business.
Bitcoin Price Outlook Since January
Since the start of this year, Bitcoin’s price has increased gradually. It ended 2022 at $16,603.67 due to the FTX collapse and regulatory pressure.
BTC started in 2023 at the $16,508 zone. However, investors began to show interest when BTC surpassed $19,669 on January 14, 2023, pushing the price to rise again. After crossing the $25,000 mark on March 16, BTC traded above $27,000 and $28,000 till April 10, when it climbed above $29,000.
Today, April 13, BTC’s price stands at $30,212 as of press time. Its market capitalization has grown to $583,952,947,218 and has a 24-hour trading volume of $19,558,222,281.
Related Reading: Bitcoin And Inflation: What’s Next For BTC After CPI Rates Came In Lower Than Expected?
Bitcoin (BTC) Price Prediction
Bitcoin (BTC) currently trades above the 50-day and 200-day Simple Moving Average (SMA); this signifies a potential buy signal. Also, the golden cross is another strong confirmation that the trend will continue.
The Relative Strength Index (RSI) ranges between the 60 and 80 levels, and buying at this level will be profitable. Also, the MACD is slightly trading the signal line, and the indicator gives a bullish signal, predicting that the price of Bitcoin will likely experience upward momentum.
Featured image from Pixabay and chart from Tradingview.com
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