• Bitcoin had its worst month since November, but Galaxy Digital CEO Michael Novogratz is still bullish on BTC.
• Novogratz attributed the recent weakness in BTC to a lack of institutional investors, but noted two recent developments as being positive for the cryptocurrency.
• Novogratz also expects Bitcoin to benefit once the U.S. Federal Reserve starts to cut interest rates and the total supply of Bitcoin is set to halve next year.
Michael Novogratz Bullish on Bitcoin
Bitcoin just had its worst month since late last year but Michael Novogratz – the Chief Executive of Galaxy Digital is still optimistic about the cryptocurrency.
Why Novogratz is Bullish on Bitcoin
Novogratz attributed the recent weakness in BTC to a lack of participation from large-scale buyers or institutional investors. But he also noted two recent developments this morning on CNBC’s “Squawk Box” that he dubbed meaningfully positive for the bitcoin; WeChat enabled bitcoin and crypto trading and Hong Kong officially allowing crypto trading for retail customers through regulated exchanges. In addition, despite BTC’s sell-off in May, it’s still up 65% year-to-date which makes it one of the best performing assets since 2023 began. Lastly, he believes that once the U.S Federal Reserve starts cutting interest rates later this year, bitcoin will be „off to the races“. The total supply of Bitcoin is also slated to cut in half in 2024 which should further drive up prices historically speaking according to him as well.
Michael Novogratz is an American billionaire investor who founded Galaxy Digital Holding Company Ltd., a merchant bank dedicated to digital assets and blockchain technology solutions based out of New York City. He has been very vocal about his bullish outlook regarding bitcoin over these past few years and recently appeared on CNBC’s „Squawk Box“ morning show where he talked further about why he remains optimistic about bitcoin despite its sell off in May 2021 which was its worst month since November 2020 according to data from CoinDesk 20 Index (CCI).
In conclusion, Michael Novogratz remains optimistic about bitcoin despite its sell off during May 2021 due primarily due it being one of best performing assets so far this year with gains of 65%. Additionally there have been two other factors which hint towards positivity – WeChat enabling crypto trading and Hong Kong officially allowing crypto trading for retail customers through regulated exchanges – both being seen as important steps forward by many industry professionals including Mr Novogart himself who believes that with US Federal Reserve likely cutting interest rates later this year, we could see an upturn in sentiment towards cryptocurrencies like never before with a key driver being further scarcity created when total supply halves next year too