This is the Main Sign of Bitcoin Prices Soaring High

Signs Bitcoin Price Will Soar High

Therefore, Novogratz believes BTC will recover once the macroeconomic climate cools. The 53-year-old CEO said BTC had lost its status as a hedge against inflation when Fed Chairman Jerome Powell started raising interest rates.

BTC is often seen as a hedge against inflation, but its price collapsed along with other risk assets when the Fed started raising interest rates.“When Powell started fighting inflation with his interest rate hammer, of course BTC declined along with various other assets,” explained Novogratz, quoted by Crypto News.

The billionaire investor argues that BTC will strengthen once Powell stops fighting inflation. According to Novogratz, Powell's actions to fight inflation had a negative impact on BTC more than inflation itself.Last month, the Fed raised interest rates by 0.75 percent as a strategy to fight inflation. The decision was a third-time increase of 0.75 percent. The Fed said interest rates will continue to increase in the near term.

An increase in interest rates has a negative impact on the economy and the risky asset class. Not long ago, the United Nations released a report warning the Fed not to increase interest rates.A number of crypto critics disagree with BTC as a hedge against inflation. Two months ago, Skybridge Capital CEO Anthony Scaramucci said BTC is not a protection against inflation.

According to Scaramucci, BTC is not yet mature enough to be a formidable protector against inflation. He said BTC had to reach one billion users in order to fulfill the role.Scaramucci has repeatedly stressed that Bitcoin's price skyrocketing is unattainable, especially when interest rates continue to rise. Nevertheless, the former White House Communications Director remains bullish on BTC in the long term.

Investment management company ARK Invest published a report that said the price of US$19 thousand is an important support for BTC because it is a cost basis investor, i.e. the current average purchase price of BTC supply minus the supply belonging to miners.The report explains, if the level of US $ 19 thousand is successfully breached, then the price of BTC will dip sharply and cause huge losses for investors.