shares 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.
advertising
Use volatile market phases as a trading opportunity: now trade cryptocurrencies directly with leverage.
77% of retail investor accounts lose money when trading CFDs with this provider. You should carefully consider whether you can afford to take the high risk of losing your money
Bitcoin probably the best brand ever created in the shortest amount of time ?
@novogratz #Bitcoin2022 pic.twitter.com/h8X0sDTWiI– CryptoNews Canada (@CryptoNewsCAN) April 7, 2022
The end of the Fed’s ultra-loose interest rate policy had been feared in the crypto market. However, the turnaround in interest rates in the USA initiated by Jerome Powell had a comparatively positive effect. This strengthens Novogratz in his prediction that the Bitcoin price will settle 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, the success of Bitcoin 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 if access to traditional banks is blocked, according to Novogratz. However, Bitcoin is not a means of circumventing the sanctions. Rather, the reason for the creation of Bitcoin is the transparency and traceability of transactions on the blockchain.
Another global political conflict that could have a massive impact on the US dollar is that of 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 the Fed will hike rates by 50 basis points. The Bitcoin bull sees the time when Bitcoin should set off to the moon when the US economy has slowed down and the Fed is easing its interest rate policy again.
Bitcoin has suffered significant losses since its all-time high on November 10, 2021, which does not make Novogratz any less optimistic. He also emphasizes that the crypto industry is a growth industry and that his company Galaxy is a growth company. He therefore still considers the mark of 500,000 US dollars to be realistic for the oldest cryptocurrency, as 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 for paying for (everyday) things. The Bitcoin billionaire said in an interview with CNBC that the crypto veteran remains a pure investment.
Editorial office finanzen.net
Leverage must be between 2 and 20
No data
Image sources: Steve Heap / Shutterstock.com, Lightboxx / Shutterstock.com