Novogratz believes that the upcoming reduction in base rates will push bitcoin up

The bearish phase of the cryptocurrency market is coming to an end, then an “explosive” rally awaits it. This opinion was expressed by Dan Tapiero, who is a co-founder of 10T Holdings and Gold Bullion International.

“We will likely see new highs in the second half of 2024 and 2025. And I think that in this bullish phase, the total capitalization of the crypto market will reach $6–8 trillion,” the expert noted.

In his opinion, the most important thing is the ability not to be influenced by the feelings and fears of other people. Tapiero noted that many areas of the cryptosphere do not affect each other, so you need to be patient with open positions.

Stablecoins traded $8 trillion last year, over 1 trillion non-fungible tokens were minted, and blockchain games continue to grow in popularity. Until recently, attention to these areas was minimal, says Tapiero.

“Five or six years ago, nothing existed. You didn’t even have Ethereum. There was only bitcoin. Thus, as the crypto industry expands, the value of digital assets also increases,” he said.

And the founder of Galaxy Digital, Mike Novogratz, is confident that this fall the US government will lower base interest rates, which will positively affect the crypto market and, in particular, bitcoin. The billionaire believes that this will happen in October.

For nearly a year, the US Federal Reserve has been raising base rates as its main inflation-fighting measure. At the same time, according to the CEO of Galaxy Digital, lowering rates always motivates investors to invest in more risky and profitable assets, including digital currencies.

“If things happen the way I think, then cryptocurrencies will be out of reach in terms of profitability. The economy will slow down — large rate increases in the past will not go without consequences. The banking crisis will create problems for small businesses in obtaining loans, and this will increase the number of bankruptcies and the unemployment rate. Therefore, the Fed will change its rhetoric, which will become a catalyst for growth for many assets, but especially for gold, silver, bitcoin and ether,” Novogratz concluded.