Renowned crypto expert Michael Novogratz, founder of digital asset management company Galaxy Digital, is optimistic about the future of assets like gold and Bitcoin (BTC) due to anticipated shifts in the United States Federal Reserve’s policies. In a recent Bloomberg interview, Novogratz expressed confidence in these assets, predicting that the Fed’s move towards less aggressive policies would encourage investors to take on more risks across various markets.
With the Federal Reserve signaling a departure from strict tightening measures, Novogratz believes this shift will lead to increased investor willingness to embrace riskier assets. The US dollar has already exhibited declines as traders anticipate future Fed rate cuts.
Novogratz foresees a meaningful economic slowdown in the US early next year, paving the way for Fed rate cuts by mid-2024. He remains bullish on Bitcoin, especially if major players like BlackRock or Fidelity enter the physically backed ETF arena.
Several factors support Novogratz’s positive outlook for Bitcoin, including potential approvals for physically-backed ETFs, reduced selling activity among long-term holders, and a decrease in the creation of new coins following the upcoming halving event next year. In this scenario, Novogratz believes Bitcoin could surpass its previous all-time highs in the coming year.
Novogratz isn’t the only expert anticipating a surge in Bitcoin prices. The belief that long-term holders are holding onto their positions in anticipation of a bullish run, coupled with expectations of untapped price potential, is a prevalent sentiment among analysts. The approval of physically backed ETFs is also seen as a catalyst for driving significant capital into the BTC market, particularly with involvement from financial giants like BlackRock and Fidelity.
Michael Novogratz’s Outlook on Other Currencies
Novogratz projects a negative outlook for the US dollar, citing weaker US growth and interest rate trends. Conversely, he anticipates strength in the Euro, Australian dollar, and Brazilian real if the dollar remains weak. Gold is expected to perform well if prices sustain above $2,000 for an extended period, and silver could experience a surge due to shortages driving demand. However, Novogratz maintains a pessimistic view on China’s yuan, considering disappointing economic data.
In the broader crypto sector, Novogratz acknowledges the removal of fraudulent projects during the 2022 decline. Markets and regulators have effectively eliminated bad actors, ensuring existing projects comply with regulations and punishing any wrongdoing, as seen in recent cases involving Binance and its CEO. Regulatory actions against fraud within the industry have received commendation for their effectiveness.
