Galaxy Digital's Novogratz On Why Bitcoin Could Hit $30k Before the End of March Amid Rising FOMO

  • The top crypto is changing hands for $23,816 after a gain of 7% in the past day.
  • A slowdown in the rate hikes by the Federal Reserve is driving a positive sentiment in the sector.

Mike Novogratz, the CEO and founder of Galaxy Digital Holdings Limited, said Wednesday that Bitcoin could close the quarter at $30,000, citing the fear of missing out (FoMO) among investors and the general excitement around the flagship crypto.

‘‘When I look at the price action, when I look at the excitement of the customers calling, the FoMO building up, it would not surprise me if we were at US$30,000 by the end of the quarter,’’ Novogratz opined at the Bank of America Corp. conference. ‘‘And I would’ve given both my shoes for that to be true just six weeks ago. If we end the year at US$30,000, I will be the happiest guy.’’

It’s not the first time that the crypto enthusiast is betting big on bitcoin. He once forecasted that the digital currency could climb as high as $500,000 in 2024 before downsizing the prediction, saying it might not happen within five years. Novogratz partly blamed the action of the Federal Reserve in light of the rising rate hikes.

‘‘What makes me skeptical that we can have the explosive back to the old highs this year is Chairman Powell, he said. ‘‘He is doing what he says he will do, and I don’t see the Fed pivoting and cutting anytime soon.’’

The effects of the Fed’s monetary tightening

As reported by ZyCrypto, bitcoin has been moving lately in line with the investors’ sentiment amid fears of higher borrowing rates. When the Fed raised the rate by 25 basis points at the beginning of the month, BTC responded, rising to $24,157, according to data by CoinMarketCap. After retracing to $21k on Valentine’s day, the price is looking up, trading at $23,901 at press time.

The positive sentiment defies the heightened regulatory pressure in the US targeting crypto exchange Kraken and stablecoin issuer Paxos. Once again, per data from the charting platform TradingView, bitcoin’s 90-day correlation with Nasdaq has jumped to 0.75.

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