Billionaire investor and Galaxy Digital founder, Mike Novogratz, claims that it’s time for people to invest in Bitcoin. This is for several reasons.
Bullish on Bitcoin
Novogratz is not only bullish, because he is behind one of the largest digital asset-focused companies in the world. Novogratz claims there are now over 180 million Bitcoin holders and the crypto adoption is ever-increasing.
Related article: MicroStrategy’s $4 billion Bitcoin investment turns profitable
80,000 of those BTC investors hold more than $1 million worth of Bitcoin, according to the latest figures, making them Bitcoin millionaires. These numbers are anticipated to rise even more gradually as the crypto winter is over.
"We're having a pretty constructive rally," says @Novogratz on #crypto. "The market is pretty certain that Chairman Powell is pretty close to finished. Gold, #Bitcoin, #Ethereum, those assets that will do well in a slowdown are telling us something." pic.twitter.com/n3tnLRoRi1
— Squawk Box (@SquawkCNBC) April 11, 2023
Novogratz explained that the price of Bitcoin fell so hard mainly due to a “collection of frauds and risk management mistakes” that the crypto sector had to get rid of.
Fortunately, despite Bitcoin falling below its last all-time high level of $20,000 for the first time ever, the industry got disposed of a lot of frauds and scams. Moreover, the market drop was caused by the aggressive interest rate policy of the Fed. However, Bitcoin’s price is rising with a possible Fed pivot.
“We’re having a pretty constructive rally based on a bunch of things. The market is pretty certain that Chairman Powell is pretty close to finished with rate hikes,” he said in a Squawk Box interview.
Novogratz noted that the crypto community along with retail investors, rather than institutional investors, have been driving the recent price increase, saying, the adoption cycle always accelerates when the price is going up.
Novogratz rejected fears of market manipulation, claiming that the high market values of cryptocurrencies like Bitcoin and Ethereum make such manipulation impossible. Though he conceded that smaller coins would be more vulnerable to such tactics. It’s very hard to manipulate a trillion-dollar market indeed.
“We’re heading into a credit crunch in the United States. Gold, Bitcoin, Ethereum, those assets that will do well in a slowdown are telling us something,” he explained.
His other point is that several parts of the world like Hong Kong, Dubai or Abu Dhabi setting up regulatory frameworks for the crypto industry. However, the US is currently fighting against it, which is mostly contributed to SEC’s Gary Gensler.