(Bloomberg) -- Michael Novogratz, the billionaire cryptocurrency investor who heads Galaxy Digital Holdings Ltd., said Bitcoin is likely to continue to trade in a range this year with the Federal Reserve raising interest rates. 

“I don’t think Bitcoin can rally aggressively until we get a pause,” Novogratz said during a TV interview on Bloomberg Crypto. Novogratz noted that he had earlier forecast a 2022 range of $30,000 of $50,000 for Bitcoin, which was little changed Tuesday at about $39,200 in New York trading.   

The largest digital asset by market value had surged last year to a record high along with other risk assets because of pandemic related liquidity the Fed had provided, Novogratz said. Now with the Fed about to tighten, investors are re-evaluating risk, along with the consequences of the Russia-Ukraine war, he said. 

“Bitcoin is a narrative story, it’s bringing people into the community,” Novogratz said. “It’s hard to bring in new people when their house is on fire.”

With the war in Ukraine contributing to market volatility, Novogratz said that there’s “zero chance” the Russian government can use cryptocurrencies to circumvent sanctions -- something some lawmakers have expressed concern about.

Massachusetts Senator Elizabeth Warren “is just wrong,” he said.

Novogratz also called for New York’s BitLicense, required for crypto businesses in the state, to be canceled.

“We got to get rid of the BitLicense,” he said. “It’s very difficult to do business in New York state” because of the requirement. 

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