/cdn.vox-cdn.com/uploads/chorus_asset/file/23962442/acastro_STK067__03.jpg)
/cdn.vox-cdn.com/uploads/chorus_asset/file/24247717/lp_logo_3.0.jpg){kind=logo}
/cdn.vox-cdn.com/uploads/chorus_asset/file/24016885/STK093_Google_04.jpg)
/cdn.vox-cdn.com/uploads/chorus_asset/file/24808816/Starfield__The_Settled_Systems___Supra_Et_Ultra_____Starfield__The_Settled_Systems___Su)
[ad_1]
Bitcoin and the broader cryptocurrency market have been trending horizontally for the past month, with no signs of an upside at this point. However, not everyone is bearish on the market as Mike Novogratz, CEO of Galaxy Digital, expects a rally in the market soon, and he explains why he thinks so.
Reasons Why Bitcoin Will Start a Bull Rally
Novogratz was Interview on CNBC’s Squawk Box on Thursday, June 1, where he gave his take on bitcoin and the crypto market and where he expected the market to go. Contrary to the current market trend, the CEO remains very bullish on the digital asset and expects some growth to take place in the market right now.
He pointed to growing adoption from Asia as countries such as Hong Kong begin to open up new avenues for retail investors to participate in the market. Not only that, WeChat, the largest social messaging platform in China, started offering bitcoin price data to users, allowing them to check the current price of BTC in yuan.
Novogratz says these two will be catalysts for a bitcoin bull market. “Crypto is scarce right now. There’s constant bidding from retail. We’re seeing it through all platforms,” Galaxy Digital’s CEO told CNBC.
BTC struggles to hold $27,000 | Source: BTCUSD on TradingView.com
Turn expected from Federal Reserve
In his interview, Novogratz also pointed to the fact that he expects the Federal Reserve to change direction later this year, which he believes will be good for bitcoin. Risk-on assets like stocks and BTC are set to suffer as the Fed maintains its hawkish stance to combat inflation, but that could change quickly if the Fed turns dovish.
The CEO expects that to happen in October 2023 and says it will create a boom for digital assets in the space. As the Fed cuts interest rates, so will interest in bitcoin, which will cause the price to skyrocket. Given this, Novogratz expects investing in bitcoin to be a better decision than buying one-year T-bills.
For institutions, he points to the fact that they have reduced their participation in the market but that does not mean they are gone. Novogratz believes that when “one of two things happens, institutions will revert to position two. You either need orderly and sensible regulations for crypto. Or you need to win next year’s US election.” Republicans need it. He further added that “crypto has become an insanely partisan issue almost overnight, which the industry really didn’t want or need.”
At the time of writing, bitcoin is still struggling in the market, trading at $27,087 with a slight gain of 0.77% on the last day.
