Michael Novogratz: "Bitcoin will cost $500,000, but it will take a long time"

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Cryptocurrency enthusiast andGalaxy Digital CEO Michael Novogratz confirmed his forecast for a Bitcoin price of $500,000, but added that such growth will have to wait longer than expected.

During an interview with Bloomberg, MichaelNovogratz noted that the macroeconomic situation has changed significantly, so Bitcoin will take more time to reach this level. Novogratz previously said that BTC will cost $500,000 by 2025.

“This will not happen in five years.I will explain why - the main change and the reason for the fall of Bitcoin from $69,000 to $20,000 is that Fed Chairman Jerome Powell decided to show the superpower of the Central Bank and began to fight inflation. He raised the base rate from 0% to 4%. So all the assets that we called inflation hedge assets started to fall. This is the main reason for the fall of the cryptocurrency market,” Novogratz noted.

At the same time, the CEO of Galaxy Digitalexpects that the cryptocurrency industry will become much stronger and more mature, which means that the rates of the main cryptocurrencies will also increase. There is currently a large-scale crisis in the industry - large companies like FTX, BlockFi and Celsius are going bankrupt, but this period will pass and the time for growth will come, Novogratz believes.

Earlier, Michael Novogratz called the founder of the bankrupt cryptocurrency exchange FTX, Sam Bankman-Fried, a fraudster and said that he should be in prison.