Billionaire investor Michael Novogratz said Bitcoin (CRYPTO: BTC) could struggle to reclaim the $100,000 level without a meaningful shift in macroeconomic conditions, particularly monetary policy.

Fed Policy Key To Next Move

Speaking on the broader crypto outlook to Bloomberg on Tuesday, Novogratz said a sustained move higher in Bitcoin would likely require central banks, especially the Federal Reserve, to ease policy.

However, he warned that persistent geopolitical tensions and inflation risks may keep policymakers cautious, limiting near-term upside.

At the time of his comments, Bitcoin was trading near $76,000, well below its prior peak around $126,000.

Meanwhile, Galaxy Digital (NASDAQ:GLXY), where Novogratz serves as CEO, reported a narrower-than-expected quarterly loss despite posting stronger-than-forecast revenue.

The loss was primarily attributed to weaker crypto prices.

The firm said it mitigated some of the impact through strategic adjustments, including portfolio reallocation and reduced exposure to certain assets.

Diversifying Into AI

Galaxy Digital is also accelerating its push beyond crypto, with growing investments in artificial intelligence infrastructure, including data centers and high-performance computing (HPC).

The firm has backed emerging platforms such as Hyperliquid (CRYPTO: HYPE), which focuses on trading perpetual futures linked to real-world assets. Novogratz said such developments highlight the evolving direction of the digital asset ecosystem.

Galaxy has also secured clients for its HPC services, including CoreWeave, and expects to begin reporting adjusted gross profit from its AI infrastructure segment in the current quarter.

According to the company, roughly 28% of its $2.8 billion in equity capital has been allocated to data center investments.

Image: Shutterstock