Mike Novogratz predicts that this will begin the Bitcoin bull market.
Bitcoin and other cryptocurrencies have been stagnant for the past month, with no indication of a positive trend. However, not everyone is pessimistic about the market. Galaxy Digital CEO Mike Novogratz expects the market to turn bullish soon and he cites reasons for his belief.
Reasons Why Bitcoin Will Begin A Bull Rally
Novogratz shared his opinions on the Bitcoin and crypto market, and where he expects the market to go, during an interview on CNBC’s Squawk Box on Thursday, June 1. Despite the current market trend, the CEO remains optimistic about the digital asset and expects a bull market as a result of recent developments in the market.
He pointed to the increasing adoption of cryptocurrencies in Asia, where countries such as Hong Kong are opening up new ways for retail investors to participate in the market. In addition, the largest social messaging platform in China, WeChat, now provides Bitcoin price data to users, enabling them to check the current price of BTC in yuan.
Both of these developments, according to Novogratz, will be a catalyst for the bitcoin bull market. “Crypto’s lackadaisical right now. There’s a constant bid from retail. We’re seeing it through all the platforms,” the Galaxy Digital CEO told CNBC.
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BTC struggles to hold $27,000 | Source: BTCUSD on TradingView.com
Expecting A Turn From The Federal Reserve
During the interview, Novogratz also mentioned that he expects the Federal Reserve to change its direction later this year, which he believes will benefit Bitcoin. While the Fed maintains its hawkish stance to tackle inflation, risk assets such as stocks and BTC continue to suffer. However, this could quickly change if the Fed becomes dovish.
The CEO expects this to happen sometime in October 2023 and predicts that it will trigger a bull run for digital assets in the space. As the Fed drops interest rates, interest in Bitcoin will rise, leading to a rapid surge in price. Given this, Novogratz believes that investing in Bitcoin will be a better decision than buying a one-year T-bill.
Regarding institutions, he noted that they have reduced their participation in the market, but this does not mean they have disappeared. Novogratz believes that institutions will return when “one of two things happens. You either need settled and sensible rules in place for crypto. Or you need the Republicans to win next year’s U.S. elections.” He further added that “Crypto has almost overnight become a crazily partisan issue, which is exactly what the industry didn’t want or need.”
At the time of writing, Bitcoin is still struggling in the market, trading at $27,087 with meager gains of 0.77% in the last day.