Galaxy Digital CEO Mike Novogratz cautions that Bitcoin (BTC) is unlikely to achieve new all-time highs (ATH) until there is a change in macro conditions. In a recent interview on Galaxy’s podcast, the billionaire predicts that Bitcoin will likely trade sideways until the Federal Reserve implements rate cuts, which he believes would have a positive impact on the leading cryptocurrency. Novogratz also suggests that more favorable crypto regulations could potentially propel Bitcoin to new ATHs.

Novogratz explains, “There is a resurgence of the ‘Oh my God, the economy’s slowing down’ narrative, which will be helpful. I don’t think Bitcoin will surpass the previous high of $73,000 unless we see action from the Fed or witness a major regulatory breakthrough. Both of these scenarios are probably unlikely.”

He further adds, “I believe we are currently in a range of $55,000 to $75,000, which is quite significant. However, it is more likely to be around $57,000 to $73,000. I think we have already reached the low and high points. I do believe the next move will be upward because as we approach the election, Federal Reserve Chairman Jerome Powell will likely want to cut rates.”

Novogratz points out that another bullish factor for Bitcoin is the increasing amount of US federal government spending and mounting debt. He believes that this will prompt more individuals to invest in Bitcoin as a form of “digital gold.”

“I currently focus on two things: crypto regulation and the debt. These two factors are contradictory to each other. If we had an administration, whether it’s Biden or Trump, that addresses the 26% of GDP federal budget, which should ideally be 20%, it would not be beneficial for Bitcoin. Therefore, having ineffective policymakers, excessive spenders, and populists in Washington is great for my net worth. This is the story of Bitcoin. Bitcoin is rising for the same reason gold is rising. However, Bitcoin’s rise is happening at a faster pace 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 last 24 hours.

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