Bitcoin Bull and Galaxy Digital CEO, Mike Novogratz, says bitcoin is for everyone. He states that those who spend 2% to 3% of their net worth on this digital asset today will see significant profits within five years. Novogratz adds that while bitcoin remains a volatile asset, he doesn’t expect its price to fall to its March level when it crashed below USD 4,000. Instead, he claims that “bitcoin prices should not fall below $ 12,000 in this current cycle.”
Evidence of a supporting Bitcoin price
According to an reportsays the bitcoin bull, unlike 2017, the current “evidence in support of bitcoin prices is better than it ever has been.” Novogratz reiterates the now generally accepted view that institutional investors drive the current bull market. Novogratz explains:
This rally is driven by institutions that are slowly entering this space, wealthy individuals, hedge funds, real institutions. Bitcoin has become a macro asset.
The participation of these players along with increased regulation “should reduce some of bitcoin’s volatility.”
Novogratz also comments on the choice of US President-elect Joe Biden for the post of Secretary of the Treasury, former Federal Reserve Chairman Janet Yellen. The former Federal Reserve Chairman has previously said “she is not a fan of bitcoin” and that it is a “highly speculative asset.”
Implications of Yellen’s Return
While Yellen’s possible return as the boss of the US Treasury has rattled some in the crypto space, Novogratz isn’t too concerned because “a lot has changed” since she made the comments. Instead, the CEO believes that Yellen’s “general moderation should be good for hard assets such as gold and bitcoin.”
Novogratz concludes with his opinion on altcoins, saying:
You can lose 60% of your money in a day. And so fair warning, if you’re going to play in those things, do it with a small size and know what you’re doing.
Meanwhile, not everyone agrees with the story that institutional investors’ entry into the crypto market is the only significant factor behind the bitcoin bull run. Marcus Swanepoel, the CEO of Luno Exchange, says store volumes have increased in recent months.
In a Twitter postSwanepoel writes:
This bitcoin bull run isn’t just from institutions. Our (retail) volumes in South Africa, Malaysia, Nigeria and Indonesia have all tripled in the past month and are (are) at record highs. Emerging market consumers are voting with their money and ready for a better financial system.
Meanwhile, at the time of writing, bitcoin had fallen from more than $ 19,350 reported on many exchanges to just above the $ 17,000 handle.
What do you think of Novogratz’s belief that BTC won’t fall below $ 12,000 in this cycle? Share your thoughts in the comments below.
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