• Michael Novogratz – the Chief Executive of Galaxy Digital – shared his optimistic view on Bitcoin, despite its worst month performance since late last year.
• Novogratz pointed out two recent developments that he deems positive for BTC: support from WeChat and retail customers in Hong Kong being able to trade crypto through regulated exchanges.
• Novogratz believes that if there is an economic slow down in the second half of 2023, the Federal Reserve will be cutting rates and Bitcoin will “be off to the races”.
Michael Novogratz Bullish on Bitcoin Despite Recent Weakness
Despite ending May with a 8.0% loss – its worst month since November – Michael Novogratz, CEO of Galaxy Digital remains bullish on Bitcoin (BTC). He explained why this morning on CNBC’s “Squawk Box”.
Recent Developments Positive for Bitcoin
Novogratz attributed the recent weakness in BTC to a lack of participation from large-scale buyers or institutional investors. However, he talked about two recent developments which he deemed as meaningfully positive for BTC: WeChat enabled bitcoin and crypto trading; And Hong Kong officially allowing retail customers to trade crypto via regulated exchanges. Despite a sell-off in May, BTC is still up 65% year-to-date making it one of the best performing assets since start of 2023.
Rate Cuts Will Be Positive for BTC
The billionaire investor also expects benefits from rate cuts by U.S Federal Reserve which he expects to take place in the final quarter of this year. In fact, he said that if given $10,000 right now he would pick BTC over 5% guaranteed return on Treasury Bills any day of the week.
Bitcoin Supply Cut In Half Next Year
Looking further ahead, next year there will be a total supply cut in half for Bitcoin which has historically been considered good news for price appreciation.
In conclusion, despite having its worst month since late last year Michael Novogratz is still optimistic about Bitcoin due to recent developments such as support from WeChat and retail customers being able to trade crypto through regulated exchanges in Hong Kong; As well as expecting benefits from rate cuts by U.S Federal Reserve likely happening at end of this year; And finally with total supply cut in half next year being historically good news for price appreciation