Bitcoin bull and Galaxy Digital CEO, Mike Novogratz, says bitcoin is for everyone. He argues that those committing 2% to 3% of their net worth to this digital asset today will see substantial gains in five years. Novogratz adds that while bitcoin remains a volatile asset he does not expect its price to drop to levels seen in March when it crashed to under $4,000. Instead, he asserts that “bitcoin prices shouldn’t fall below $12,000 in this current cycle.”
Evidence of a Supporting Bitcoin Price
According to a report, the bitcoin bull says unlike 2017, current “evidence supporting bitcoin prices is better than it’s ever been.” Novogratz repeats the now widely accepted view that institutional investors are driving the current bull market. Novogratz explains:
This rally is being driven by institutions slowly getting into this space, high net-worth individuals, hedge funds, real institutions. Bitcoin’s become a macro-asset.
The participation by these players along with increased regulation “should smooth out some of bitcoin’s volatility.”
Novogratz also comments on U.S. President-Elect Joe Biden’s pick for the Treasury Secretary post, former Federal Reserve Chairperson, Janet Yellen. The former Federal Reserve Chair has previously said “she is not a fan of bitcoin” and that it is a “highly speculative asset.”
Implications of Yellen’s Return
Although Yellen’s possible return as the U.S. Treasury boss has rattled some within the crypto space Novogratz is not overly worried because “a lot has changed” since she made the comments. Instead, the CEO thinks Yellen’s “general dovishness should be good for hard assets like gold and bitcoin.”
Novogratz concludes by sharing his thoughts on altcoins saying:
You can lose 60% of your money in a day. And so fair warning, if you’re going to play in those things, do it with small size and know what you’re doing.
Meanwhile, not everyone agrees with the narrative that the entry of institutional investors into the crypto market is the only significant factor behind the bitcoin bull-run. Marcus Swanepoel, the CEO Luno exchange says retail volumes have increased in the past few months.
In a Twitter post, Swanepoel writes:
This bitcoin bull run is not just from institutions. Our (retail) volumes in South Africa, Malaysia, Nigeria, and Indonesia all trebled over last month and (are) at all-time highs. Emerging market consumers are voting with their money and they’re ready for a better financial system.
Meanwhile, at the time of writing, bitcoin had dropped from over $19,350 reported on many exchanges to just above the $17,000 handle.
What are your thoughts on Novogratz’s belief that BTC will not go below $12,000 in this cycle? Share your views in the comments section below.
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