The CEO of Galaxy Digital, Mike Novogratz, is cautioning that Bitcoin (BTC) is unlikely to reach new all-time highs until there are changes in macro conditions. In a recent interview on Galaxy’s podcast, the billionaire predicts that Bitcoin will likely trade sideways until the Federal Reserve (Fed) implements rate cuts, which he believes would be beneficial for the leading cryptocurrency. Novogratz also suggests that more favorable regulations in the crypto industry could propel Bitcoin to new all-time highs.

Novogratz explains, “There is a resurgence of the narrative that the economy is slowing down, which will be helpful. I don’t think Bitcoin will surpass its previous high of $73,000 unless we see action from the Fed or a significant regulatory breakthrough. Both of these scenarios are unlikely. I believe we are currently in a trading range of $55,000 to $75,000, with a narrower range of $57,000 to $73,000. We have likely reached the low and high points. I do anticipate the next move will be upwards because we are approaching the election, and Federal Reserve Chairman Jerome Powell would likely want to cut rates.”

Novogratz also highlights another bullish factor for Bitcoin, which is the increasing amount of US federal government spending and mounting debt. He believes that this will drive more individuals to invest in Bitcoin as a form of “digital gold.” Novogratz states, “Currently, I focus on two things: crypto regulation and the debt. These two factors are conflicting. If we had an administration, whether it be Biden or Trump, that addressed the 26% of GDP federal budget, which should ideally be 20%, it would not be favorable for Bitcoin. Therefore, having inept policymakers, excessive spenders, and populist politicians in Washington is actually beneficial for my net worth. This is the nature of Bitcoin. It is rising for the same reasons that gold is rising. However, Bitcoin is experiencing faster growth due to being a newer technology and commodity, resulting in a quicker adoption cycle.”

At the time of writing, Bitcoin is trading at $66,849, representing a 2.5% increase in the past 24 hours.

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