Mike Novogratz, a proponent of cryptocurrencies, said there’s a good chance of Bitcoin returning to $30,000 by the end of March, which is still about 25% higher than its present price.
Novogratz had earlier predicted that Bitcoin would reach $500,000. The CEO and founder of Galaxy Digital Holdings Ltd. said at a Bank of America Corp. conference on Wednesday that it “wouldn’t surprise me” if we were at $30,000 by the end of the quarter given the price action, consumer interest, and growing FOMO. And just six weeks ago, I would have paid with both of my shoes for it to be true.”
As a decline in risk aversion helps allay worries about an intensifying crackdown by US regulators, bitcoin on Wednesday increased to its highest level since August.
In the past, Novogratz predicted that Bitcoin would reach $500,000 in 2024. He scaled back that prediction in December, saying he still anticipates reaching that goal, but “not in five years.” He laid the blame at the time on Jerome Powell, the head of the Federal Reserve, which he repeated on Wednesday. At the time of publication, BTC was trading at $24,517, up 2.65% in the last 24 hours.
In the aftermath of a US regulatory crackdown, Binance Chief Executive Officer Changpeng “CZ” Zhao suggested that the cryptocurrency industry may abandon dollar-linked stablecoins and possibly explore algorithmic alternatives.
“Stablecoins are under a lot of strain right now,” Zhao, the CEO of the world’s largest cryptocurrency exchange, said during a Twitter Spaces Q&A on Tuesday, claiming that numerous agencies are putting pressure on them. The market for USD stablecoins may decline as a result; hence, the sector is looking at its possibilities.
Paxos Trust Co. was ordered by the New York State Department of Financial Services to halt issuing new tokens of the third-largest stablecoin, BUSD, which is a coin branded with the Binance name and has a market cap of almost $16 billion.
By Feb. 21, Paxos will no longer work with Binance and will stop issuing BUSD, though it will continue to support the token for at least the next 12 months.
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