• Michael Novogratz, CEO of Galaxy Digital, was optimistic on Bitcoin despite the 8% drop in May.
• He believes that recent developments such as WeChat and Hong Kong allowing crypto trading for retail customers are positive signs for Bitcoin.
• Moreover, he anticipates that rate cuts by the Fed in October could be beneficial for Bitcoin.
Michael Novogratz’s Bullish Outlook on Bitcoin
Despite its 8% drop in May, Michael Novogratz – the Chief Executive of Galaxy Digital is still bullish on 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 the institutional investors. However, he also noted two recent developments which he dubbed meaningfully positive for the cryptocurrency; these include WeChat enabling bitcoin and crypto trading and Hong Kong officially allowing crypto trading for retail customers through regulated exchanges.
Rate Cuts Could Be A Tailwind For BTC
Novogratz 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. According to him, if there is a real slow down in the second half of 2023, then Fed will be cutting rates by October and this could propel cryptocurrencies like Bitcoin higher.
Halving Event Next Year Could Also Help Price Appreciation
The total supply of Bitcoin is set to cut in half next year which has historically been a tailwind for price appreciation.
„Pick BTC Over 5% Guaranteed Return On Treasury Bills“
To that end, Novogratz suggested that if one had to invest $10K right now, they should pick BTC over a 5% guaranteed return on Treasury Bills.