Bitcoin won't rise aggressively as Fed raises rates

(Bloomberg) Michael Novogratz, the billionaire crypto investor who runs Galaxy Digital Holdings Ltd., said bitcoin is likely to continue trading within a range this year as the Federal Reserve raises interest rates.

“I don't think bitcoin can rise aggressively until we have a pause,” Novogratz said during a television interview on Bloomberg Crypto. Novogratz noted that it had previously projected a range for 2022 of $30,000 to $50,000 for bitcoin, which on Tuesday was trading with little change around $39,200 in New York.

The largest digital asset by market value rose to a record last year along with other risky assets due to the pandemic-related liquidity provided by the Fed, Novogratz said. Now, with the Fed on the brink of toughening, investors are reassessing risk, along with the consequences of the war between Russia and Ukraine, he said.

“Bitcoin is a narrative story, it's drawing people into the community,” Novogratz said. “It's hard to attract new people when their house is on fire.”

With the war in Ukraine contributing to market volatility, Novogratz said there is “zero chance” that the Russian government could use cryptocurrencies to circumvent sanctions, something some lawmakers have expressed concern about.

Massachusetts Senator Elizabeth Warren “is wrong,” she said.

Novogratz also called for the cancellation of the New York BitLicense, required for cryptocurrency businesses in the state.

“We have to get rid of BitLicense,” he said. “It's very difficult to do business in New York State” because of the requirement.

Original Note:

Novogratz Says Bitcoin Won't Rally 'Aggressively' as Fed Hikes

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