There are good chances that Bitcoin could retreat to $30,000 by the end of March. Galaxy Digital founder Mike Novogratz said this at a Bank of America conference, Bloomberg reports.
He added that he would “be a lucky guy” if the first cryptocurrency ends the year at that level.
Novogratz attributed the positive near-term outlook to recent price moves and signs of growing FOMO among clients.
On 16 February the digital-gold prices tested the $25,000 level. The “Fear and Greed Index” moved back into the optimistic zone for investors.
At the time of writing, the price of the leading cryptocurrency had retraced to around $23,800 (CoinGecko).
In December, Novogratz repeated his forecast of the rise of Bitcoin to $500,000. However, the Galaxy Digital chief noted that this would require more than five years due to significant macroeconomic changes.
Regarding Bitcoin’s prospects for 2023, Novogratz again cited the policy of the U.S. Federal Reserve (the Fed) to raise the policy rate to combat inflation.
“Taking a skeptical view of the idea that we will again see explosive highs this year is what Fed Chair Powell is doing. He is actually delivering on what he promised. I do not think the Fed will pivot and cut rates in the near term,” the entrepreneur stressed.
In January 2022, Novogratz proposed to gold advocate and Bitcoin-skeptic Peter Schiff a $1 million bet on Bitcoin’s price. The head of Galaxy Digital said he would donate that amount to charity or other goals of the opponent’s choosing if digital gold trades below $35,000 after a year.
In October, Novogratz predicted the duration of the current bear phase of the cryptocurrency market to six months.