The price of Bitcoin surged by more than eight percent on February 16, the largest single increase since the world’s most popular cryptocurrency soared 10.5 percent on September 9. Bitcoin hit $24,895 overnight before retreating to $23,648 at the time of writing. Mike Novogratz is one of many Bitcoin investors that is delighted to see the cryptocurrency’s value heading in the right direction.
Novogratz is the founder and CEO of Galaxy Digital, a cryptocurrency investment firm. Back in January 2021, Novogratz claimed he would have a tattoo to celebrate Bitcoin reaching $500,000, something he believed was all but guaranteed to happen during 2024. However, earlier this week, Novogratz said he would be delighted if a single Bitcoin changed hands for only $30,000 by the end of 2023. Novogratz had previously stated at a cryptocurrency conference in Miami last April that he thoroughly believed Bitcoin would one day be worth $1 million; the digital asset was trading at $44,300 at the time of his bullish statement.
Rapper Drake is a Bitcoin Embracer
Image courtesy of The Come Up Show
Bitcoin has become more mainstream in recent times, with large sections of the general public investing after seeing the meteoric rise in the coin’s value. Just last week, the global superstar rapper Drake posted to his 131 million Instagram followers that he’d profited $512,000 in Bitcoin winnings after using the cryptocurrency to bet on the Super Bowl with the best online sportsbook for Americans. Having someone with the social media reach as Drake essentially promoting Bitcoin can only be a good thing for the volatile cryptocurrency.
The surge in Bitcoin’s value liquidated some $80 million in short positions, with $65 million of that eye-watering sum occurring on February 15. Those who keep track of such matters will know this is the most short positions wiped out in a single day since January 20. Despite the recent positivity, Novogratz believes Bitcoin hitting $30,000 by the start of 2024 will be an incredible result that will leave him and his investment company delighted.
“When I look at the price action, when I look at the excitement of the customers calling, the fear of missing out building up, it wouldn’t surprise me if we were at $30,000 by the end of the quarter, “ Novogratz said. “And I would’ve given both my shoes for that to be true just six weeks ago. Like if we end the year $30,000, I will be the happiest guy.”
Cost of Living Crisis Will Hinder Bitcoin’s Short-Term Growth
Novogratz is still adamant that Bitcoin will one day hit the magical $500,000 mark, but he no longer believes this will happen within the next five years. External factors, such as the current inflation rate and ever-increasing interest rates set by the United States Federal Reserve Chairman Jerome Powell, will continue hindering Bitcoin’s price.
“What makes me skeptical that we can have explosive back-to-the-old highs this year is Chairman Powell. He’s really doing what he says he’s going to do, and I don’t see the Fed pivoting and cutting anytime soon.”
Powell recently warned that the US central bank is likely to increase interest rates more than investors initially expected in an attempt to get inflation under control. Inflation in the United States is currently at 6.4 percent, 0.1 percent less than in December 2023. Apart from the last two years, you must go back to January 1982 to find inflation rates on par with today’s rate.
The Federal Reserve has increased its main interest rate from near-zero to a target range of 4.5 and 4.75 percent this year alone. In his speech on February 1, Powell highlighted his concerns about doing too little to bring inflation under control.
“It’s very difficult to manage the risk of doing too little and finding out in six or 12 months that we actually were close but didn’t get the job done. If we feel like we’ve gone too far and inflation is coming down faster than we expect, then we have tools that would work on that.”