Here Is Why Galaxy Digital CEO Bullish On Bitcoin Amid Fed Rate Cut Intention
Mustafa Mulla9 Apr 20242 min read
Bitcoin, the world’s leading cryptocurrency, has garnered significant attention for its wild price swings, offering both lucrative opportunities and substantial risks. Recently, Galaxy Digital CEO Mike Novogratz sparked a discussion with his recent tweet. He’s feeling hopeful that the U.S. Federal Reserve may cut interest rates.
Fed To Cut Rate…
In his tweet, Novogratz seems skeptical about the Federal Reserve’s plan to cut interest rates, stating, “Call me crazy but I don’t see one good reason for the Fed to cut rates. Yet think, they will.”
Even though Novogratz believes that FED will cut rates, Bitcoin will keep going strong, even if the U.S. Federal Reserve cuts interest rates. But he’s worried about the U.S. government spending more than it’s bringing in.
Despite this skepticism, Novogratz sees a silver lining, suggesting that lower interest rates could benefit assets like Bitcoin, gold, silver, and copper. This optimism stems from his bullish outlook on Bitcoin’s long-term prospects, including his prediction of it surpassing $100,000 by 2024.
Novogratz highlights Bitcoin’s appeal as a safe haven asset, drawing increasing interest from investors seeking protection against economic uncertainty.
Read More : Bitcoin Halving 2024: Analysts Warn of Potential “Sell-the-News” Scenario
Profit-Taking To Add Selling Pressure
On the flip side, former BitMEX CEO Arthur Hayes offers a stark warning, predicting a potential post-halving plunge in Bitcoin’s price. Hayes points to profit-taking by investors who’ve held onto Bitcoin for a while might start selling, and that could push prices down.
Meanwhile, the upcoming Bitcoin halving event, which slashes miner rewards by 50%, raises concerns about its impact on miners. As rewards decrease, miners could face tougher competition and lower profit margins. This might prompt them to sell more of their holdings, potentially adding selling pressure to the market.
Bitcoin Price Action
Despite the uncertainty, Bitcoin’s price remains high, hovering above $70,120. However, it has seen a slight decrease in its price over the last 24 hours.
Also Check Out : Ripple CTO Reveals Effective XRP Burn Method to Boost Market Health
