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Summary:

The CEO of Galaxy Digital, Mike Novogratz, has forecasted that Bitcoin will lead the next rally once the US Federal Reserve eases its monetary tightening policy set to start next week. According to Mr. Novogartz, his forecast of a Bitcoin rally will be followed by that of digital assets linked to good projects.

He also explained that the crypto-verse would not go away, and the current pullback results from the industry adjusting to the popping of the asset bubble caused by the same US Fed. He said:

BTC will lead the next rally when the Fed pauses/flinches. Good projects will follow suit.

This industry will not go away.

We are just adjusting to the popping of an asset bubble caused by the Fed. Building revolutionary tech and change isnt supposed to be easy.

In an earlier Tweet, Mr. Novogratz pointed out that the ongoing crypto-market pullback will test investors convictions until it finds a bottom.

Furthermore, unlike traditional finance, crypto does not have the corporate buybacks and giant pension rebalancing that are currently causing a short squeeze in the equities market. He shared his insights on the ongoing crypto-market pullback through the following statement.

Crypto trades poorly. This is going to be a period that tests peoples convictions. We will find a bottom when we do. The break from trade-fi markets is because we dont have corporate buybacks and giant pension rebalancing that is causing this squeeze in equities.

Concerning when the US Fed might pause its monetary tightening policy that begins on June 1st, a recent report by Reuters anticipates that its monetary policy tightening might be paused in September if there is an economic deterioration and inflation subsides.

The pause will also probably happen at a time when interest rates will be ranging between 1.75% and 2%.The report by Reuters also quoted a note from Bank of America strategists, which further explained the possibility of a pause by the Fed through the following statement.

We have recently seen a tenuous but remarkable change in Fed communications, where some Fed officials suggest the option of downshifting or pausing later in the year as they reach 2% given the challenging macro backdrop, tightening of financial conditions, and potentially softening inflation.

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Galaxy Capital's Mike Novogratz Believes Bitcoin Will Lead the Next Rally When the US Fed Pauses its - Ethereum World News