Michael Novogratz: Bitcoin Will Hit $40,000 If the Fed Cuts Interest Rates

Galaxy Digital founder Mike Novogratz has stated that if the US Federal Reserve cuts interest rates, the price of Bitcoin could rise to $40,000.

Novogratz predicts that both Bitcoin and Ethereum will outperform all other investments as the Fed moves to ease interest rate hikes.

Novogratz believes that the recent collapse of several troubled US banks has highlighted the potential for a credit crisis, which could force the regulator to take countermeasures. If other lenders reduce the volume of loans issued as a result of these bankruptcies, it could "slow down the economy" and potentially prompt the Fed to cut interest rates more aggressively than anticipated.

"If rates keep falling, then Bitcoin will be in the gold zone and could reach $40,000," 

Novogratz said.

Novogratz has stated that if rates continue to fall, Bitcoin will enter the "gold zone" and could reach $40,000. He also believes that, in the conditions of a credit crisis, Bitcoin and Ethereum will be among the most effective transactions, in addition to long positions in gold.

Despite a crisis of confidence in the crypto industry, the CEO of Galaxy Digital has previously stated that Bitcoin and Ethereum will remain in the market. With Novogratz's latest predictions, it will be interesting to see how the crypto market performs in response to the actions of the US Federal Reserve.