• Michael Novogratz, Chief Executive of Galaxy Digital, is still bullish on Bitcoin despite its recent price decline.
• He attributes the decline to a lack of institutional investors but sees two developments as significantly positive for Bitcoin: WeChat enabling crypto trading and Hong Kong allowing retail crypto trading through regulated exchanges.
• Novogratz also expects that rate cuts from the U.S. Federal Reserve will be a tailwind for Bitcoin’s price appreciation near year-end.
Michael Novogratz Bullish on Bitcoin Despite Price Decline
Bitcoin ended May down 8.0% – its worth month since November, yet Michael Novogratz – the Chief Executive of Galaxy Digital is keeping optimistic on the cryptocurrency. The billionaire investor attributed the recent weakness in BTC to a lack of participation from large-scale buyers or institutional investors and shared his view on CNBC’s “Squawk Box” this morning.
Two Developments Positive For Bitcoin
Novogratz dubbed two recent developments meaningfully positive for the Bitcoin. Firstly, WeChat enabled bitcoin and crypto trading which is significant progress in terms of Asian adoption. Secondly, Hong Kong allowed crypto trading for retail customers through regulated exchanges – another step forward in terms of global regulation and acceptance of cryptocurrencies as a legitimate asset class.
Rate Cuts Will Be A Positive For Bitcoin
Novogratz also expects that rate cuts from the U.S Federal Reserve will be a tailwind for Bitcoin’s price appreciation near year-end as he believes that if we see an economic slow down in the second half of 2023 then rate cuts are likely by October time which should provide some support for prices once again.
Cutting Supply Of Bitcoin In Half Could Benefit Prices
Furthermore, the total supply of Bitcoin is set to cut in half next year which could have further implications for prices as historically this has been associated with increased demand and higher prices due to limited supply compared to demand levels at any given time..
All in all, it appears that although BTC had a tough end to May there are several factors that could lead to more positive performance during Q4 2023 including new regulations around crypto trading coupled with potential rate cuts from central banks such as the Federal Reserve along with reduced supply levels due to halving next year – something that could all combine together nicely and push prices back towards previous highs or even beyond them!