Galaxy Digital founder believes bitcoin will be rising in price

The bearish trend of recent months could last up to 6 more months, according to Galaxy Digital founder Mike Novogratz.

“You know, a bearish case means we have 2 to 6 months of this pain left. In a bullish case, the market starts to break. And we will see many fractures. Not necessarily in cryptocurrencies, but also in the rest of the world,” he said.

The entrepreneur is confident that the peak of sales on the crypto market has largely passed. Novogratz noted that “most of the people who needed to sell did it.” This affected prices and a drop in activity in the digital asset market, including on the part of buyers.

At the same time, the billionaire pointed to the connection between the sale of cryptocurrencies and the aggressive increase in interest rates carried out by the Fed. Novogratz believes that regulator policy has had a much more serious impact on bitcoin than on many other assets.

“I think when there is a pause [in raising rates], we will see how bitcoin rises. Just like other cryptocurrencies. Are we going to pause? At some point, yes,” he said.

Analysts admit that the next US inflation report could be a catalyst for the rate of the first crypto coin. The core consumer price index of 6.5% is expected to be the highest in 40 years.

Experts from JPMorgan argue that due to too “hot” CPI, shares could fall by 5%. And Covario top manager Florian Giovannacci believes that securities, like risky assets such as cryptocurrencies, can fluctuate by 3% up or down.

8848 Invest Lead Analyst Viktor Pershikov also expects increased volatility and an update to the BTC annual low against the backdrop of the Fed’s actions. At the same time, the expert believes that then bitcoin will start to grow.

“I do not expect a non-stop drop in cryptocurrency prices until the end of this year: now there is a large margin position to buy on the market, which can be shaken out of the market by a sharp decline, and after that, against the backdrop of an increase in institutional purchases, move back to growth,” said analyst.