• Michael Novogratz, the CEO of Galaxy Digital, is still bullish on Bitcoin despite May’s 8.0% decline.
• Novogratz attributes BTC’s recent weakness to a lack of institutional investors.
• He expects Bitcoin to benefit from U.S. Federal Reserve rate cuts near year-end, which could be a “tailwind for price appreciation.”
Michael Novogratz Still Bullish on Bitcoin Despite 8% Decline
Bitcoin ended May down 8.0%, its worst month since November, but Michael Novogratz–the Chief Executive of Galaxy Digital–is still bullish on the cryptocurrency. Novogratz shared his view on Bitcoin this morning on CNBC’s “Squawk Box” and attributed the recent weakness in BTC to a lack of participation from large-scale buyers or institutional investors.
Positive Developments for Bitcoin
Novogratz also noted two recent developments that he dubbed meaningfully positive for the Bitcoin: WeChat enabled bitcoin and crypto trading while Hong Kong officially allowed crypto trading for retail customers through regulated exchanges – both indicating Asian adoption. Despite BTC being down 8% in May, it is still up 65% year-to-date making it one of the best performing assets since the start of 2023.
Rate Cuts Will Be Positive for Bitcoin
Novogratz also expects Bitcoin to benefit once the U.S. Federal Reserve starts to cut interest rates that he sees likely in the final quarter of this year; if given $10,000 right now he would pick BTC over 5% guaranteed return on Treasury Bills as he believes U.S economy will slow down with rate cuts and “crypto will be off to the races” then onwards..
Halving Set To Occur Next Year
Further ahead, the total supply of Bitcoin is set to cut in half next year which has historically been a tailwind for price appreciation so investors should keep an eye out for that too!
In conclusion, there are reasons why Michael Novogratz is firmly bullish on Bitcoin despite its recent struggles and suggests an increased chance of success near year-end with Fed rate cuts and halving coming up soon!