Galaxy Digital’s Mike Novogratz remains bullish on Bitcoin (BTC) despite the flagship cryptocurrency’s lackluster performance over the last few weeks.
“If you look at the Ethereum price, Ethereum still trades bullish. People see Ethereum as a technology bet and Bitcoin as a debasement of fiat currency bet.”
In spite of BTC’s weak price action, Novogratz continues to be optimistic about the prospects of Bitcoin as he names three macro tailwinds that can keep the king crypto from falling below the $40,000 level.
“There are new players lining up to participate in this crypto economy, from the Mid East to all over the US to pension funds and so there’s a bid below the market. It’s an institutional bid. They’ve done their work. They’re waiting to participate.
I think people now have woken up that crypto is an asset class. That Bitcoin is part of a crypto portfolio. That even if the Fed starts acting more hawkish, it’s an amazingly complicated plane to land for Powell and Yellen.
We’ve got a political environment that wants to spend more money. We have a monster budget deficit and if you raise rates too fast, you’re going to sink the economy, and no politician wants to do that and so we lost [an] apolitical Fed chairman.
All Fed chairmen are now political just based on the deficit. This idea of independent central banking is now farce, and so Powell can act tough for a while because he just got reappointed, but if he starts doing things that put Biden’s reelection at risk, you’re going to hear something.”
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