In a recent CNBC interview, the CEO of Galaxy Digital, Michael Novogratz explained the reasons behind the recent rally in Bitcoin prices and what it means for the cryptocurrency market as a whole. Novogratz highlighted the chance of Bitcoin staying solid above the $50,000 mark, with anything dramatic occurring out of the blue being the only exception.
Let’s delve deeper into his analysis to understand what factors are driving Bitcoin’s price dynamic, and why he believes that BTC won’t go below $50,000.
Novogratz emphasized Bitcoin’s soaring prices which reached an all-time high (ATH) at $73,000 showing that there are still positive trends in the market. Simultaneously, Ethereum breaks through the $4,000 barrier.
Novogratz explained that Bitcoin’s price rise is mostly due to supply and demand, with growing acceptance in the United States. He sees this as Americans showing confidence in digital assets.
Volatility Shall Remain!
However, keeping the volatile nature of Bitcoin in mind, Novogratz emphasized that if there are no dramatic events of any kind, the price of Bitcoin is going to remain above $50,000.
This stability, he pointed out, has resulted from the existence of ETFs and the continued institutional investment into the market through these ETFs. Nevertheless, Novogratz stressed that it was important to be careful during periods of irrational exuberance when funding rates are high.
Novogratz, emphasizing the connection between Bitcoin prices and conventional assets such as gold, addressed political underpinning and monetary policy as the principal stimuli.
He stressed that the problem is with excessive government spending especially noticeable in President Biden’s budget with a trillion-dollar and more deficit.
“Bitcoin has always been a report card on fiscal stewardship. And we have got no stewardship in D.C. right now,”
Novogratz
Evaluating the purpose of Bitcoin within the context of monetary policy, Novogratz stressed its importance as a key yardstick. He described the fact that “The genius of Bitcoin rally is that white paper sets the monetary policy for this ecosystem in code,” while fiat money changes at the discretion of particular governments.
Novogratz underlined that Bitcoin helps people preserve their wealth when the economy of the State is not stable.
Novogratz also expressed a view on predictions of Ethereum ETF that could affect the crypto market. Even though there is a heated discussion within the SEC on the subject of first classifying Ethereum as a security, it seems that Novogratz is quite optimistic about securing approval for an ETF. He did not miss taking Bitcoin’s roadmap as his example and envisioned the same result for Ethereum.
Read More: Dencun Upgrade Completed, Spot ETF Applications Underway: Ethereum Price May Outperform Bitcoin in 2024
In conclusion, Novogratz expects Bitcoin to remain above $50,000 but acknowledges the importance of regulations, policies, and market sentiment in shaping its future.
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