Novogratz is betting that huge price on his assessment of bitcoin’s growing adoption.

Speaking on a Bloomberg interview on Tuesday, bitcoin permabull and founder of Galaxy Digital (TSE: GLXY) Mike Novogratz said though bitcoin was likely to touch $500,000 five years out, the current outlook is that the leading crypto will remain rangebound. Factors like the Ukraine war and a hawkish Fed are likely to keep a lid on rallies in bitcoin. (Markets Insider)

Bitcoin likely to be rangebound

“I don’t think bitcoin can rally aggressively until we get a pause,” he said during the interview. “Bitcoin is a narrative story, it’s bringing people into the community. It’s hard to bring in new people when their house is on fire.”

On Fed rate hikes:

“I think literally the FED hasn’t even started hiking rates, they haven’t started pulling liquidity from the system and so the whole year thought would be a $30,000 to $50,000 range in bitcoin risk to the upside, not the downside,” Novogratz explained.

Novogratz Says Bitcoin adoption to drive $500K target

“We see an adoption cycle that accelerates. Bitcoin grew so much faster last year [and] crypto grew [more] than the internet did its best years in the 90s. I see this going viral everywhere. If it’s in the Middle East or in you know pension funds in the United States all getting ready to participate.”

“But I think five years out if Bitcoin’s not at $500,000 I’m wrong on the adoption cycle.”

The implications of sanction-related currency turmoil for the king crypto

“I think we’re entering a world that’s unknown, where people are going to struggle to figure out ‘what is the reserve currency?’”

“The US isn’t going away, the dollar’s not going away. But it’s not going to be the sole place.”

“The whole world’s not going to flip to Bitcoin overnight. But you’re going to see more and more people say, ‘I want to have some of my money outside of the sovereign.’”

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Image of Mike Novogratz: Wikimedia Commons