• Michael Novogratz, a crypto investor believes that the Fed will begin to reduce its bond holdings and the cryptocurrency may start to flourish.
• Speaking to attendees at the “ 2022” conference in Miami, the expert pointed out that if the dollar weakens and BTC soars, it will be a sign of the fall of the West.

Michael Novogratz is an investor and the founder CEO of Galaxy Digital Holdings. He predicts that Bitcoin prices will rise as a result of the United States Federal Reserve’s May reduction in bond holdings.

However, the billionaire crypto investor reckons the US central bank will remain “very hawkish for a while” under Jerome Powell to try to bring down inflation, with interest rates likely to be raised by 50 points.

Novogratz made his forecast during the “Bitcoin 2022” conference that kicked off Wednesday in Miami, sponsored by Mayor Francis Suárez, a crypto enthusiast who has vowed to turn the city into a major global hub for digital finance.

Novogratz, who participated in an event attended by more than 25,000 people predicted that Bitcoin would soon reach $500,000 and possibly even $1 million per token. “Bitcoin will go to the moon,” he said, and this will start when the Fed take a pause.

The US central bank will begin reducing its huge $9 trillion Treasury stockpile in the next few weeks. Even if it means that loans are more costly for consumers and businesses, the goal is to stop price growth.

Flipside

• After a mild rally to $45,000, the price of the world’s largest cryptocurrency has fallen below $44,000 in the last 24 hours, according to data from Coindesk.com.
• For several weeks, the cryptocurrency struggled to move out of its value range between $44,000- $48,000.

Keep the dollar strong

Novogratz stated that he prayed for American economic managers not to screw up. He stated that he prayed for the USD to stay strong, and BTC not to go into infinity because it could mean “the rest of the Western World has fallen.”
He said also that his Russian friends had recently relaxed their sanctions against Russia following the invasion of Ukraine. Likewise, he added that “with stability in the West” the cryptocurrency can reach its target price.

People who have placed their bets on Bitcoin’s takeoff and its utility in crisis situations continue to believe that it will perform well this year. It is a hedge against inflation for some people, and should therefore not be missing in investment portfolios.

Novogratz says that although Bitcoin is tech-heavy, the ratio could decrease over time. Novogratz points out that Bitcoin’s purpose is to be used as an asset for long-term value, not as a tool of commerce daily purchases.

That is, “I am going to take part of my wealth and keep it and store it there,” he stressed. Institutional investors have been snapping up BTC as they gain confidence in cryptocurrency and the sector continues to expand.

Why you should care

• There are so many predictions about Bitcoin futures that there’s something for everybody. The fact that Bitcoin’s price hasn’t stopped rising since 2009 is an undisputed fact. The cryptocurrency’s price has increased 20 million percent since 2009.

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