Michael Novogratz: Bitcoin ‚Off to the Races‘ Near Year-End
- May was Bitcoin’s worst month since November, but Michael Novogratz is still bullish on BTC.
- Novogratz attributes the recent weakness to a lack of participation from large-scale buyers or institutional investors.
- He also expects Bitcoin to benefit once the U.S. Federal Reserve starts to cut interest rates later this year.
Michael Novogratz on Bitcoin Price Weakness
Bitcoin ended May down 8.0% – its worst month since November. However, Galaxy Digital CEO Michael Novogratz is still optimistic about its future price movements. Recently, he spoke on CNBC’s “Squawk Box” and explained why he believes that Bitcoin will be “off to the races” near year-end.
WeChat and Hong Kong Crypto Trading Legalization
Novogratz attributed the recent weakness in BTC to a lack of participation from large-scale buyers or the institutional investors. To counter this issue, two positive developments occurred recently; WeChat enabled bitcoin and crypto trading as well as Hong Kong officially allowing crypto trading for retail customers through regulated exchanges leading to more Asian adoption of cryptocurrency. Despite this sell-off in May, it is up 65% year-to-date which makes it one of the best performing assets since the start of 2023.
Rate Cuts Will Benefit Bitcoin
Michael Novogratz also expects Bitcoin to benefit once the U.S. Federal Reserve starts cutting interest rates that he sees likely in the final quarter of this year if there is a slowdown in economy second half of this year. He argued that it would be better investment option than 5% guaranteed return Treasury Bills if one had $10,000 right now and wanted to invest it somewhere safe.