Mike Novogratz: Bitcoin Will Reach $40,000 if FRS Reduces its Key Rate

Mike Novogratz, CEO of Galaxy Digital, has predicted that quotes of the first cryptocurrency, Bitcoin, will reach the level of $40,000 when the US Federal Reserve System (FRS) starts to reduce the key rate.

He has suggested that assets such as gold, euro, Bitcoin, and Ethereum will all benefit from this move. Novogratz also believes that a decrease in the volume of loans issued by banks in the US could lead to a credit crisis, forcing the Fed to make more aggressive rate cuts due to an “economic slowdown.”

The CFTC lawsuit against the Binance bitcoin exchange, filed in late March, is the main uncertainty for the cryptocurrency market according to the CEO of Galaxy Digital.

The head of the regulator, Rostin Behnam, accused the trading platform of deliberately breaking the agency’s rules. Novogratz believes that the digital gold rally proves the value of bitcoin as a hedge during a crisis in the US economy and emphasized that now is the best time to buy bitcoin.