According to Novogratz, Bitcoin Will Go Much Higher, Here’s Why
Mike Novogratz – CEO of Galaxy Digital – said that China’s less hostile stance on the crypto industry could be one of the reasons behind a potential price increase for bitcoin over the next several months.
Hong Kong subsidiaries of some major Chinese banks have recently offered their services to local cryptocurrency businesses.
Novogratz’s Bullish Forecast
The American investor believes that a few factors could trigger another price rally for the cryptocurrency market. For one, he argued that “all the sales that needed to be done had been done.”
Recall that countless adverse events in the sector last year, including the Terra crash, the 3AC bankruptcy, and the FTX meltdown, deterred investor interest and caused many to liquidate their holdings.
Another bullish indicator could be positive winds from China. Beijing has recently given its green light to crypto developments taking place in Hong Kong, while the Bank of China, the Bank of Communications and the Shanghai Pudong Development Bank have started offering their services to domestic digital asset entities.
Novogratz believes that the crypto market could see “substantial” growth in the coming months if the trend remains the same. He also predicted that bitcoin could reach $30,000 by the end of this month.
Highlighting the efforts of Chinese banks, the businessman expressed regret that US regulators have recently cracked down on the crypto world:
“It’s not good for America’s chance to lead this industry. It’s pushing people offshore, and that’s why we’re fighting back,”
Earlier this week, the US CFTC filed a lawsuit against Binance for allegedly violating trading regulations. Previously, the SEC investigated Kraken over a possible sale of unregistered securities.
Steve Hanke’s rebuttal
Prominent economist and well-known critic of the crypto industry – Steve Hanke – recently did another experiment, describing bitcoin as “a highly speculative asset, not a currency”. He added that it lacks stability and can be used in scams while buying it is a “fool’s game”.
Novogratz disagreed with the comments, urging Hanke to look at BTC’s performance during the past two-three years, when “it remained safer” than shares of banking giants — JPMorgan Chase & Co. — and tech behemoths — Google. Is”.
Steve it has outperformed all assets ytd in 2 yr and 3 yr on risk adjusted weighting (sharp ratio), it is safer than JPM and Google. Run the numbers yourself.
— Mike Novogratz (@novogratz) March 28, 2023
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