Bitcoin has been on a roll since the beginning of the year. The world’s number one digital currency has recently reached a price of about $30K per unit (for the first time in about ten or 11 months), and it seems like 2023 is set to be a year of healing for the asset. Now, Mike Novogratz – a bitcoin bull and billionaire hedge fund manager – believes the currency is going to see a major price boom in the final months of the year.
Mike Novogratz Predicts Big Things for BTC
2023 is shaping up to be the exact opposite of 2022. The latter year was one of the worst on record for BTC. The currency lost more than 70 percent of its value after hitting a new all-time high in November of 2021. During that time, the currency was trading at a whopping $68,000 per unit, though by the time the end of 2022 came around, the currency had fallen into the mid-$16K range. It was a sad and ugly sight.
In his recent discussion, Novogratz said he’s confident the Federal Reserve is going to initiate maneuvers that ultimately help bitcoin. He stated:
The clearest trades have been and will continue to be long gold, long euro, long bitcoin, [and] long Ethereum. These assets should do well with the Fed stopping hiking and then cutting.
Not long ago, the Federal Reserve hinted that 2023 could be a year of continued rate hikes, though they don’t expect them to be as aggressive as they were in 2022. In addition, the federal agency said there’s a likelihood of a “mild recession” towards the end of the year.
In 2022, the Fed initiated so many rate hikes as a means of fighting inflation (which continues to be a problem in America having recently hit a 40-year high), that it ultimately caused problems for bitcoin and other assets, though Novogratz doesn’t think that’ll be the case this time around. He said:
Bitcoin had a huge run. We can consolidate here before moving towards $40,000 so long as the Fed plays out the way I think it’s going to play out.
$30K was a Big Turning Point for the World’s Leader in Digital Assets
He believes that in the final months of 2023, bitcoin will reach a price of about $40K, which will ultimately add about $200 billion to the crypto space. Alex Kuptsikevich – a senior market analyst at FX Pro – also stated:
The $30,000 mark was significant for bitcoin in 2021 and the first half of 2022, acting as a market mode switch. Last year, bitcoin consolidated around this price for about five weeks before plunging sharply. There is a greater chance of a mirror dynamic, with the bulls taking a long time to gather their strength before making a decisive move higher.
