One of the biggest bitcoin and crypto bulls just made a shock price prediction
Bitcoin
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The price of bitcoin has fallen over the past 12 months, dragging down the broader bitcoin and crypto market — even as the Tesla billionaire sent the price of one bitcoin rival sharply higher.
Now renowned bitcoin and crypto bull Mike Novogratz has scrapped his $500,000 per bitcoin five-year price prediction, blaming the Federal Reserve’s brutal series of rate hikes this year (despite expectations that the Fed may be about to change course).
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The Bitcoin price has crashed by about 70% since it hit its all-time high about a year ago.
“The biggest change that happened and the real reason bitcoin went down from $69,000 to close to $20,000 is that [Fed chair] Jay Powell decided to find his central bank superpowers and start beating inflation over the head with a series of rate hikes, the Galaxy Digital CEO said. Bloombergand walks back his prediction that bitcoin will rocket to $500,000 by 2027, but claims it will still reach that level eventually.
“The Fed is in control and they’re doing a damn good job, and that’s the main reason crypto went down,” Novogratz said, adding a series of crypto company scandals have put pressure on the market.
“The rest of this malarkey that we’ve had between Three Arrows and BlockFi and Celsius and all these companies that were either poorly run or fraudulent is absolutely damaging the overall confidence in crypto.”
This year, the Fed has raised interest rates to levels not seen since before the 2008 financial crisis in response to ongoing inflation that some fear could spiral out of control.
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Bitcoin price has been on a steep downward slide for the past year, crashing to around $17,000 … [+]
This week, expectations have risen that the Fed may be ready to shift to a dovish stance following signs that inflation may be easing and Powell signaling that the pace of rate hikes may slow.
“Fed Chairman Powell’s speech on the labor market resulted in improved market sentiment as he reiterated the need for caution in the fight against inflation,” BitBull Capital CEO Joe DiPasquale said in emailed comments.
“What the market is now looking towards is a potential ‘soft landing’, giving breathing room to both stocks and cryptoassets. Going forward, the market will look to the December 14 meeting of the Federal Open Market Committee to determine the next course. the rise is less than 50 basis points .If so, we could see another injection of bullish sentiment, possibly taking the bitcoin price to $20,000.
