• Michael Novogratz, CEO of Galaxy Digital, is still bullish on BTC despite its 8.0% drop in May.
• Novogratz attributes the recent weakness to a lack of participation from institutional investors.
• He believes that rate cuts by the U.S. Federal Reserve in the fourth quarter will be positive for Bitcoin’s performance.
Michael Novogratz Bullish on Bitcoin Despite Price Drop
Bitcoin (BTC) ended May down 8.0%, marking it’s worst month since November, but Galaxy Digital CEO Michael Novogratz is still bullish on BTC. In an interview with CNBC’s “Squawk Box”, he attributed the recent weakness to a lack of participation from large-scale buyers or institutional investors and discussed two recent developments that are meaningfully positive for Bitcoin: WeChat enabled Bitcoin and crypto trading in Hong Kong and retail customers being able to trade cryptocurrencies through regulated exchanges in the city-state. Despite this sell-off, BTC is still up 65% year-to-date making it one of the best performing assets since the start of 2023 according to Novogratz.
Fed Rate Cuts Positive for Bitcoin
Novogratz also expects Bitcoin to benefit once the U.S. Federal Reserve starts to cut interest rates which he sees as likely occurring in late 2023 or early 2024. He noted that if there is a real slow down seen in the second half of this year, then „crypto will be off to the races.“ Additionally, next year’s halving event could also be a tailwind for further price appreciation according to him.
Positive Developments for Crypto Adoption
The two developments mentioned by Novogratz were WeChat enabling crypto trading in Hong Kong and regulated exchanges allowing retail customers in Hong Kong to trade cryptocurrencies legally and safely – both these points are significant steps forward towards mainstream adoption of digital currencies like Bitcoin and Ethereum (ETH). The potential impact these news events have had on prices may not yet have been fully realized as markets digest them over time as more individuals become aware about how easy it is now becoming for them to own cryptocurrency investments legally and without fear of being scammed or defrauded online through unregulated exchange platforms or other methods such as peer-to-peer transactions etc..
Cryptocurrency Market Potential
By providing easier access points into owning digital currencies like BTC & ETH via official channels like WeChat & regulated exchanges respectively; it opens up opportunities for much larger pools of capital entering into this space which can lead to further price appreciation over time due to increased demand and liquidity being created within these markets – this could potentially make cryptocurrency investing more attractive than traditional asset classes such as stocks & bonds etc..
All signs point towards even greater levels of adoption & investment into cryptocurrency markets over coming months/years which should naturally propel prices higher according to Michael Novogratz – Chief Executive at Galaxy Digital who remains steadfastly bullish on BTC despite its 8% drop during May 2023