Cryptocurrency investor and Galaxy Digital CEO Mike Novogratz recently predicted that Bitcoin, the flagship cryptocurrency, could hit $40,000, provided that the Federal Reserve halts interest rate hikes and starts cutting rates, Bloomberg reports.
Novogratz cited long gold, long euro, long Bitcoin and long Ethereum as the "clearest" trades, all of which should benefit from the Fed's anticipated policy changes.
Following Bitcoin's recent breakthrough past the $30,000 milestone, Novogratz expects the cryptocurrency to consolidate before moving toward the $40,000 mark, contingent on the Fed's actions aligning with his expectations.In contrast, he predicts equities will remain "range-bound" this year, noting their relatively high prices make them neither cheap to buy as value nor particularly attractive for investors.
In a previous CNBC interview, Novogratz shared his insights on Bitcoin's surge above $30,000, attributing the rally primarily to the crypto community rather than major institutional players.
He emphasized that the adoption cycle typically speeds up as prices increase. It remains to be seen whether or not Novogratz's most recent prediction materializes.