Mike Novogratz: Bitcoin (BTC) Price Will Surge Soon After This Fed Action

In the midst of a challenging macroeconomic scenario, Mike Novogratz is optimistic with regards to his Bitcoin price prediction. Novogratz, the chief executive officer of Galaxy Investment Partners, has been a long time supporter of investing in Bitcoin (BTC). However, he does not believe BTC could bounce back massively by the end of 2022. Novogratz recently said there would be a slowdown in institutional investment flow into crypto industry until next year.

Bitcoin As An Inflation Hedge

The Galaxy CEO said he believes that Bitcoin will not go past $30,000 in near term. He added that BTC price in the range of $20,000, $22,000 or $30,000 would be ideal. In this context, Novogratz made a comment on the possibility of BTC playing role of an inflation hedge. Speaking to CNBC on Tuesday, he said the Federal Reserve’s decisions to raise interest rates were affecting BTC price. If the Fed relaxes the rate hike pattern, there could be a bull run for Bitcoin and other assets, he suggested.

“When Powell started beating inflation over the head with a sledgehammer, of course Bitcoin came back down as did lots of assets. If he gives up this fight, you are going to see Bitcoin and other assets take right back off.”

Fed Warned On Recession Risk

The United Nations Conference on Trade and Development warned central banks including the Fed of recession risks. The agency said central banks are risking chances of recession followed by prolonged stagnation if they keep raising interest rates. If a global economic recession does happen, BTC could stand a chance to benefit as a preferred choice of investment. However, the top cryptocurrency is yet to erase its correlation with the traditional markets. Nevertheless, Mike Novogratz Bitcoin price prediction could eventually become a reality if BTC deviates from other assets.

Meanwhile, BTC had after close to ten days crossed the psychological barrier of the $20,000 mark on Tuesday. As of writing, BTC price stands at $20,000, up 3.39% in the last 24 hours, according to price tracking platform CoinMarketCap. Earlier in September, BTC reached a peak of $22,540, following which there was a sharp drop.