parts in this article
Forex in this article
Bitcoin will always be an investment
A stable dollar is essential
Global political factors determine volatility
Bitcoin started as an experiment and within a short time (13 years) became the best brand in the world – and decentralized, without a CEO, said Mike Novogratz, founder and CEO of Galaxy Digital at Bitcoin 2022 in Miami.
– CryptoNews Canada (@CryptoNewsCAN) April 7, 2022
The end of the Fed’s ultra-low interest rate policy was feared in the crypto market. However, the turnaround in US interest rates that Jerome Powell had initiated had a relatively positive effect. This strengthens Novogratz in his prediction that the Bitcoin price will be between 30,000 and 50,000 US dollars. Global political factors such as geopolitical risks or rising interest rates are responsible for the high volatility. However, Bitcoin’s success is primarily linked to a stable US dollar.
bitcoin and dollars
Cryptocurrencies recently became particularly relevant in the context of the Ukraine war. As a result of decentralization, cryptocurrencies are still available even though access to traditional banks is blocked, according to Novogratz. However, Bitcoin is not a means of circumventing the sanctions. The reason for the creation of Bitcoin is rather the transparency and traceability of transactions on the blockchain.
Another global political conflict that could have a massive impact on the US dollar is the island nation of Taiwan. China has been putting military pressure on Taiwan for several years, but has not yet struck the final blow due to international pressure. It has been suspected for some time that the Chinese government may divest its US dollar reserves before attacking Taiwan. This would greatly accelerate the de-dollarization of the world economy.
Novogratz emphasizes the importance of the US dollar for the global economy, but also for Bitcoin. He prayed that the Fed would not screw up the current interest rate policy because stability and cohesion in the Western world could only be achieved with a stable dollar that did not rise immeasurably.
To the moon
Novogratz predicts that the Fed will raise interest rates by 50 basis points. The Bitcoin bull sees the time when Bitcoin should go to the moon when the US economy has slowed down and the Fed eases interest rate policy again.
Bitcoin has suffered significant losses since its record high on November 10, 2021, which does not make Novogratz less optimistic. He also stresses that the crypto industry is a growth industry and that his company Galaxy is a growth company. He therefore still considers the $ 500,000 mark to be realistic for the oldest cryptocurrency he confirmed in Miami.
While Ethereum is establishing itself as a currency for the NFT art market, Novogratz does not see Bitcoin as a currency to pay for (everyday) things. The Bitcoin billionaire said in an interview with CNBC that the cryptocurrency veteran remains a pure investment.
Gearing must be between 2 and 20
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