Novogratz: "Bitcoin will struggle to reclaim $100,000"

▲ Bitcoin (BTC), decline, bear market/ChatGPT generated image

An analysis has emerged suggesting that the process for Bitcoin (BTC) to reclaim the $100,000 mark will not be easy given the current macroeconomic environment. A prominent figure in the virtual asset industry pointed out the sober reality of the market, citing inflation and interest rate policies.

According to a Bloomberg report on April 28 (local time), Michael Novogratz, CEO of Galaxy Digital, stated in an earnings conference call on Tuesday that for Bitcoin to surpass the $100,000 level for the first time since early November last year, monetary easing policies from central banks must precede it. Novogratz predicted that the Federal Reserve (Fed) would maintain a wait-and-see approach without policy changes for the time being, due to the high likelihood of inflation figures worsening in the aftermath of the war with Iran.

Galaxy Digital recorded a net loss of $216 million in the first quarter, but its performance was better than market expectations. Revenue decreased by 22% year-over-year to $10 billion, exceeding analysts' estimates of $8.8 billion. To mitigate losses from declining virtual asset prices, Galaxy Digital has embarked on a strategic shift towards a data center business for artificial intelligence (AI). It has transformed its existing mining facilities into high-performance computing infrastructure, securing clients such as CoreWeave. Approximately 28% of Galaxy Digital's total capital of $2.8 billion is currently invested in the data center sector.

Novogratz identified Hyperliquid as a model showing the future of the virtual asset market. Hyperliquid is a blockchain that allows trading of perpetual futures linked to real assets such as oil, silver, and the S&P 500 index. Novogratz explained that Galaxy Digital increased its exposure to Hyperliquid to reduce losses, stating that assets with clear economic models, unlike simple cooperation-focused tokens, will lead the market in the future. Galaxy Digital expects to see tangible profits from its AI infrastructure business starting this quarter.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*