How Will Rate Hikes Affect Bitcoin? Billionaire investor: Bitcoin's yearly rise limited

Billionaire investor Michael Novogratz, head of Galaxy Digital Holdings, recently said that bitcoin will continue to fluctuate within a range this year without rising too sharply as the Federal Reserve announces interest rate hikes.

In a media interview, Michael Novogratz noted, "I don't see bitcoin going up quickly unless we hit the pause button on interest rate hikes."

Earlier, he predicted that bitcoin would fluctuate between $30,000 and $50,000 in 2022.

Michael Novogratz explained that the liquidity provided by the Fed over the past two years has allowed bitcoin to soar to all-time highs along with other risk assets, but now that the Fed is set to tighten monetary policy, investors need to reassess risk assets.

Previously, the cryptocurrency market was highly volatile due to the Russia-Ukraine conflict, and Michael Novogratz believes there is zero chance that the Russian government will use cryptocurrencies to evade sanctions.

As of writing, bitcoin rose above $41,000 and ethereum rose to $2,760.