• Bitcoin ended May down 8.0% – its worst month since November. Galaxy Digital CEO Michael Novogratz is still bullish on BTC and he attributed the recent weakness to a lack of participation from large-scale buyers or institutional investors.
• He noted two recent developments that are meaningfully positive for the Bitcoin: WeChat enabled bitcoin and crypto trading and Hong Kong officially allowing crypto trading for retail customers through regulated exchanges.
• Novogratz also expects Bitcoin to benefit once the U.S. Federal Reserve starts to cut interest rates which he sees likely in the final quarter of this year, as well as BTC’s total supply cut in half next year.
Michael Novogratz Bullish On Bitcoin Despite Recent Weakness
Bitcoin ended May down 8.0% – its worth month since November, however, Galaxy Digital CEO Michael Novogratz is still bullish on BTC. He explained why this morning on CNBC’s “Squawk Box” why he remains optimistic about the cryptocurrency despite recent weakness.
Lack Of Participation From Large-Scale Buyers Or Institutional Investors
Novogratz attributed the recent weakness in BTC to a lack of participation from large-scale buyers or institutional investors but noted two recent developments that are meaningfully positive for the Bitcoin: WeChat enabled bitcoin and crypto trading and Hong Kong officially allowing crypto trading for retail customers through regulated exchanges. He also pointed out that BTC, despite a sell-off in May, is still up 65% year-to-date which makes it one of the best performing assets since early 2023.
U.S Federal Reserve To Cut Interest Rates Soon
Novogratz also expects Bitcoin to benefit once the U.S Federal Reserve starts to cut interest rates which he sees likely in the final quarter of this year, as well as BTC’s total supply cut in half next year potentially being a tailwind for price appreciation . The billionaire investor said he would definitely pick BTC over a 5% guaranteed return on Treasury Bills if he had to invest $10,000 right now due to rate cuts being beneficial for Bitcoin prices long term..
Asian Adoption Of Cryptocurrency Growing
The growth of Asian adoption was another factor highlighted by Novogratz when explaining why he remains bullish on Bitcoin despite current market conditions.. The move by WeChat is particularly significant given it has 1 billion users worldwide and allows them access to cryptocurrency markets with ease.. As well as this Hong Kong has now allowed crypto trading for retail customers through regulated exchanges further boosting Asian engagement with cryptocurrencies..
Conclusion
Despite ending May down 8%, Michael Novogratz remains bullish on Bitcoin citing two major developments – increased Asian adoption plus potential rate cuts by US Federal Reserve – as key factors that will drive prices higher near end of 2023..
