Bitcoin price is struggling to stay above $40,000, but the options expiration on Friday could give the bulls the $160 million profit they need to keep the positive momentum going.
Bitcoin has had a modest upward trend for the past two months and has bounced back many times.
Mike Novogratz Predicts Bitcoin Range
In an interview with Bloomberg TV, Michael Novogratz, CEO and founder of Galaxy Digital, estimates that Bitcoin (BTC) will reach $500,000 in the next five years. Despite BTC’s current price, Novogratz’s surprising prediction comes as a surprise. He also predicted that Bitcoin will trade between $30,000 and $50,000 this year.
Since the beginning of 2022, the cryptocurrency market has come to a standstill and is starting to move downwards. Governments around the world have been pushed to include crypto in their future policies due to the current geopolitical crises. Recent events, such as the Russian invasion of Ukraine and the planned rate hike by the Federal Reserve, have perpetuated market skepticism. He said:
“I think the FED literally hasn’t even started raising rates yet, they haven’t started pulling liquidity out of the system yet and so all year it was thought that bitcoin risk would go from $30,000 to $50,000. rise, not the downside.”
BTC/USD is trading above $40k. Source: Trading Display
“You know if bitcoin isn’t at $500,000 five years later, I’m wrong on the adoption cycle,” noted Michael Novogratz, despite the current BTC price. He believes that Bitcoin, the world’s largest cryptocurrency, grew much faster than the internet did in the 1990s.
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Adoption requires a break
If the king’s crypto is to rally, Novogratz believes a pause is needed, as BTC’s narrative is to draw individuals into a community.
Bitcoin users outnumber Russians by a large margin, and it is difficult to recruit new members in the current climate.
According to Novogratz, the bitcoin revolution is not a one-way street. He cited the explosive expansion of altcoins, non-fungible tokens and dollar-pegged stablecoins as examples.
There are still some regulatory hurdles to overcome. Novogratz argued that BitLicense, New York’s pioneering bitcoin regulatory system, should be scrapped.
He also chided the Securities and Exchange Commission for its divisive, enforcement-based regulatory agenda.
At the same time, Novogratz once again welcomed the Biden government’s crypto executive move.
The price of Bitcoin is up more than 4.4% in the last 24 hours and it is currently trading at $41,217.
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Featured image from Pixabay, chart from TradingView.com