Galaxy Digital CEO: Bitcoin Won't Rally With Fed Rate Hike

Michael Novogratz, CEO and founder of cryptocurrency investment firm Galaxy Digital, said that with the Federal Reserve imminent to raise interest rates, Bitcoin is likely to continue to trade within a price range this year without surging significantly.

He had previously predicted that Bitcoin’s price range in 2022 would be between $30,000 and $50,000. As of press time, Bitcoin is about $39,500 per piece, which is in this range.

Galaxy Digital CEO: Bitcoin Won't Rally With Fed Rate Hike

Michael Novogratz said Bitcoin surged to record highs last year, along with other risk assets, as the Federal Reserve provided a lot of liquidity during the pandemic. Investors are reassessing risks at a time when the Federal Reserve is about to tighten monetary policy, coupled with more uncertainty caused by the conflict between Russia and Ukraine.

He said there was “zero chance” that the Russian government would use cryptocurrencies to evade sanctions, which Sen. Elizabeth Warren of Massachusetts fears. In addition, he called for the cancellation of the BitLicense, a business license for virtual currency activities issued by the New York State Department of Financial Services (NYSDFS), which made it “difficult to do business in New York State.”