Mike
11 July 2018; Michael Novogratz, CEO, Galaxy Digital, on the MoneyConf Stage during day two of RISE 2018 at the Hong Kong Convention and Exhibition Centre in Hong Kong. Photo by Seb Daly / RISE via Sportsfile

Novogratz Drops Forecast for Bitcoin to Hit $500,000 In 5 Years

Citing the Federal Reserve’s interest rate increases, crypto advocate Mike Novogratz, dropped his estimate for Bitcoin to jump to $500,000 in five years.

Mike
11 July 2018; Michael Novogratz, CEO, Galaxy Digital, on the MoneyConf Stage during day two of RISE 2018 at the Hong Kong Convention and Exhibition Centre in Hong Kong. Photo by Seb Daly / RISE via Sportsfile

During an interview on Thursday in Bloomberg television, Novogratz said, “It will, but “not in five years.”
The biggest change that happened is that Fed Chair Jerome Powell found “his central banking superpowers.”

Like most other risk assets, Bitcoin has plummeted this year because the Fed is raising rates to contain inflation, Novogratz, the chief executive of Galaxy Digital, said.
According to him, the demise of FTX, along with the collapse of hedge fund Three Arrows Capital and lenders Celsius Network and BlockFi are “certainly hurting the overall confidence in crypto, but that too shall pass.”

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Right now, Galaxy Digital is looking at potentially acquiring distressed and cheap crypto assets through “some small acquisitions,” Novogratz said. Galaxy has also decreased its balances on crypto exchanges as a precautionary measure and began looking closely at exchanges’ reserves, post getting some of its assets trapped on the FTX exchange.