The progress of the cryptocurrency sector leads Novogratz to view BTC as an opportunity for buyers looking for profits. Since the war between Russia and Ukraine creates much inflationary pressure, he predicts the price will break resistance at USD 50,000.
Mike Novogratz, the CEO of Galaxy Digital, recently predicted that Bitcoin would outperform its current levels in the coming months. He based his optimistic outlook on the series of events that have unbalanced the international economy.
Three crucial factors have been the Russian war tension, the fears of inflation, and the sluggish steps to restore the supply chain.
Novogratz Has an Improved Outlook for BTC
Although Novogratz expected relatively positive returns in the cryptocurrency market, he extended his forecast about the growth of Bitcoin. The executive pointed to the crypto landscape with an improved outlook, considering the latest international developments.
He said he anticipated a steady swing from USD 30,000 to USD 50,000 in the BTC price after the latest crash. However, he believes that the possibility of finding higher returns will be more likely.
Several Factors Influence the Bitcoin Price in the Markets
Mike Novogratz based the new estimate on several factors that would influence the appreciation of Bitcoin in the markets. The instabilities in other securities, alongside international obstacles in the supply chains, create uncertainty to buy among investors.
In that way, the relevance of Bitcoin would attract traders that seek an asset to enter with more optimism amid fears. Novogratz views the pioneering cryptocurrency as an opportunity that a growing number of buyers consider when looking for profits.
His opinion relies on the progress of the cryptocurrency sector, whose development allows a higher adoption of BTC in the economy. He said that the appeal of BTC attracts more people, which complements innovation in Web3 and the Metaverse.
Irregular International Geopolitical Changes Affect the Stability of Bitcoin
Novogratz talked about the incidence of the events in the international community on the stability of Bitcoin. He highlighted the emerging tensions due to the Russian military offensive against Ukraine. He said it affected the most influential fiat currencies, including the US dollar (USD) and the ruble (RUB).
The quick implementation of Western sanctions against Russia gave rise to a perception of cryptocurrencies that favored their appreciation. Securities traders would seek escape routes to the volatility of stock prices and supplies.
The CEO of Galaxy Digital said that the war between Russia and Ukraine creates much inflationary pressure through the commodity cycle. Amid that situation, Novogratz has an improved outlook, in which the price would break resistance at USD 50,000.
Considering the rallies of Bitcoin in the first quarter of 2022, he does not rule out a massive influx of investors. He adds that the US government is willing to issue a flexible regulation for cryptocurrencies.
He mentioned that Democrats, who had opposed crypto assets, are aware that voters like that asset class. However, he has not provided any details on the specific levels that Bitcoin could reach.
Bitcoin is trading at around USD 45,779 and has accumulated a 0.3% gain over the last 24 hours. Its daily trading volume is above USD 26.84 billion, and its market capitalization is about USD 870.21 billion, according to CoinGecko.
By Alexander Salazar
