Bitcoin to ‚Go Off to the Races‘ Near Year End, Novogratz Says

3. Juni 2023 Aus Von admin


  • Galaxy Digital CEO Michael Novogratz is still bullish on Bitcoin despite its recent 8% decline.
  • Novogratz attributed the weakness to a lack of institutional participation but sees two developments as ‘meaningfully positive’ for Bitcoin.
  • He expects BTC to benefit once the Federal Reserve starts to cut interest rates in Q4 2023 and from next year’s halving event.

Michael Novogratz Still Bullish On Bitcoin Despite Recent Weakness

Bitcoin ended May down 8.0%, recording its worst month since November. Despite this, Galaxy Digital CEO Michael Novogratz is still bullish on BTC. He shared his view on CNBC’s “Squawk Box” this morning. He attributed the price drop to a lack of institutional investment and noted that two recent developments were ‘meaningfully positive’ for Bitcoin – WeChat enabled bitcoin and crypto trading, while Hong Kong has officially allowed crypto trading for retail customers through regulated exchanges. Novogratz also pointed out that BTC is up 65% year-to-date, making it one of the best performing assets since the start of 2023.

Rate Cuts Will Be Positive For Bitcoin

Novogratz believes that Bitcoin will benefit from rate cuts by the U.S. Federal Reserve, which he expects in the fourth quarter of this year due to slowing economic growth in the second half of 2023. If this happens, he says “crypto will be off to the races”. Looking ahead, next year’s halving event – a decrease in total supply – could also provide tailwinds for price appreciation.

WeChat Enables Crypto Trading

WeChat is one of the most widely used messaging apps in China with over 1 billion active users every month and recently it enabled crypto trading on its platform which was viewed positively by many industry analysts who believe it could lead to more mainstream adoption of cryptocurrencies in Asia especially China where regulation had been very strict regarding digital assets before now . This development could potentially increase demand for bitcoin and other cryptos leading them higher prices .

Hong Kong Regulates Crypto Exchanges The Hong Kong government recently announced regulations allowing retail customers to trade cryptocurrency through regulated exchanges , giving more legal protection than before . This move has been seen as another step towards bringing cryptocurrencies into mainstream finance as it gives traders more security when dealing with digital assets . Furthermore , it opens up new opportunities for institutional investors looking to invest large sums into crypto markets without worrying about potential legal issues or scams .

< h2 >Halving Event Could Provide Tailwinds For Price Appreciation The upcoming halving event scheduled for 2024 could have significant impact on bitcoin prices , according to many analysts . A decrease in total supply would mean that there would be less coins available thus driving up demand and consequently pushing prices higher especially if institutional investors decide to enter into market at same time . This combination of events could result in a surge similar or even higher than what happened after last halving event when bitcoin went from $1500 all way up $20 000 within few months following reduction total supply by 50 %