By
Godfrey Benjamin
May 10th, 2024
Despite a bleak outlook, Novogratz believes that the Bitcoin “store-of-value” appeal will see it rise to $500K in five years.
Galaxy Digital CEO Mike Novogratz, believes that Bitcoin (BTC) could hit $500K by 2027. Novogratz sees this as possible due to the leading crypto’s unique properties and adoption growth.
Going by Novogratz’s $500K price prediction, Bitcoin will hit a market cap of $9.2 trillion. For BTC to hit this threshold, the king coin would have to jump 625% from its November record high. At the moment, the possibility of BTC rising substantially seems bleak due to pervading market conditions. Currently, the world’s largest crypto is a little over $23,700 and has a market cap of over $451.5 billion.
Novogratz Provides Further Argument on Bitcoin $500K Forecast
Regardless of the market, Novogratz remains resolute and believes BTC is “tailor-made to being an anti-inflation store of value”. He highlighted some of the advantages of the token and added that BTC is easily transferable, thus beating out gold on several levels. Novogratz also stressed the importance of BTC’s given store of value by pointing out how the debt-driven global economy is triggering high consumer price inflation (CPI).
CPI’s recent surge over the past year represents the highest in over forty years. Factoring this with BTC’s recent downturn does little to back claims that the crypto protects wealth during inflationary cycles.
Nonetheless, Novogratz touched on potential increased adoption for BTC, especially in mainstream finance sectors. The Galaxy Digital CEO suggested that more institutions across the US, Europe, and the Middle East will continue to “see this as an opportunity.”
Novogratz’s optimism is hardly suprising since the Galaxy Digital CEO is an avowed BTC enthusiast and a firm crypto believer. However, his projected price target may not easily convince even the most optimistic and passionate BTC devotees.
The billionaire’s five-year price outlook also echoes similar statements he made earlier this year in March. During a media session, the former global macro investor predicted that one Bitcoin would be worth half a million dollars by 2027.
The Luna Bitter Pill & Renewed Sense of Investor Optimism
Novogratz was one of many investors who lost huge sums in the Luna price crash. The wipeout resulted in a loss of more than $50 billion and the total collapse of the Luna token and its ecosystem. Like several affected investors, Novogratz was left to ruminate on his chances and reflect on how different things might have been. However, he refrained from subscribing to the torrent of criticism directed at digital currencies in the wake of the Luna fiasco. As Novogratz explained in a media interview session:
“This has been a complete and total old-school ass-beating. But it’s important not to throw the baby out with the bathwater because we had a speculative mania in lots of asset classes.”
“Bitcoin is not going away as a macro asset. Web3 is not going away. We’ll spend more time in the metaverse, therefore companies will sell digital assets,” added he.