Mike Novogratz, the founder and CEO of Galaxy Digital, recently predicted that Bitcoin (BTC) prices could reach $30,000 by the end of March. This prediction comes after BTC experienced its largest daily gain in over a month, with a 12% surge over the past 24 hours. To reach Novogratz’s price prediction, BTC only needs to climb a further 21.5% from current levels.
Novogratz has previously predicted that prices would reach $500,000 for one BTC in 2024, but he has since revised that forecast due to the Federal Reserve’s interest rate hikes. Higher interest rates make cash a more attractive investment for passive income and the threat of a recession is still looming, which means less disposable income to spend on high-risk assets such as crypto.
The latest big move for BTC has improved market sentiment and the Bitcoin fear and greed index is currently registering a 62, which is firmly in greed territory. BTC prices have surged an epic 11.8% on the day to reach $24,711 at the time of writing, according to CoinGecko. This price level is the highest it has been since mid-June and it has wiped out all losses in the February dip.
Analysts are noting that there isn’t much resistance between $25K and $30K and that Ethereum could also revisit $2,000 soon if the momentum continues. If Novogratz’s prediction is correct, this could be a very exciting time for crypto investors. However, it remains to be seen if the current bullish sentiment can be sustained in the face of the Fed’s interest rate hikes and the potential for a recession.