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Mike Novogratz, CEO of crypto merchant bank Galaxy Digital and a well-known Bitcoin bull, has once again reiterated his bullish stance to the biggest cryptocurrency, predicting that Bitcoin should retest its $20,000 highs by the end of 2020.
Just for the reminder, in January 2020, reflecting on the proliferation of crypto assets, many of which have attempted to vie with Bitcoin (BTC)’s function as a store of value, Novogratz said:
“There’s 118 elements on the periodic table, and only one gold. Bitcoin is going to be digital gold, a place where you have sovereign money, it’s not U.S. money, it’s not Chinese money, it’s sovereign. Sovereignty costs a lot, it should.”
Novogratz then also noted that critical infrastructure for institutional investors to become comfortable with crypto is gradually falling into place — albeit temporarily slowed by the recent United States government shutdown. He explained that forthcoming custodial solutions from New York Stock Exchange (NYSE) operator ICE’s Bakkt platform and investment giant Fidelity’s digital asset business indicate the institutional watershed is just getting started.
Novogratz Doubles Down Claims on Bitcoin Rise in 2020
However, speaking to CNBC’s Closing Bell recently, Novogratz doubled down on his claim that the leading cryptocurrency should skyrocket in 2020.
— CNBC's Closing Bell (@CNBCClosingBell) April 2, 2020
What we could conclude, every time the Dow closes 100 or more points higher, Bitcoins seems to follow. Last week when Dow closed 534 points higher Novogratz was especially bullish on Bitcoin. He pointed out that, for the first time, high-net-worth individuals and hedge fund investors are getting into Bitcoin.
“This is the year for Bitcoin – if it doesn’t go up now, I’m not sure when it will”
Novogratz also stressed the fact that Bitcoin is a “hard asset” and that we are just now starting to see real flows into it. He briefly brought up the trillions of dollars in quantitative easing that’s going on and how untenable that situation is.
“Money doesn’t grow on trees. Right now, it feels like we crossed the Rubicon where everyone feels money grows on trees… I don’t think the FED’s doing the wrong thing it’s just that we’re going to debase the value of fiat.”
Speaking about concrete numbers, Novogratz said that Bitcoin should at least double within six months. If it doesn’t, he may just “hang up (his) spurs.”
As one of the biggest investor in the crypto-space, the Galaxy Digital CEO is historically bullish on Bitcoin. He was among the first to confirm a new bull market just under one year ago and predicted that BTC would reach a new all-time high in 2019.
Will Recession Help?
However, after the really discouraging sell-off that happened last month, Novogratz told his colleague and crypto proponent Anthony Pomplianoanth in an interview that crypto adoption would likely suffer a setback of 12-18 months due to investors needing fiat. And this is actually a pretty rational explanation. However, in times of inflation and recession (and yes, it is happening), investors are often more likely to cling on something that can traditionally hold a value. Before, you had real-estates and gold. Now, here’s Bitcoin as well.
And also, this huge sell-off is so last month But, that was so two weeks ago and let’s not forget that after that U.S. Congress approved a $2 trillion coronavirus stimulus deal. Just to remind you, the parties in Congress have jointly adopted the largest stimulus package in the country’s history last week, worth $2.2 trillion, to support the economy. The fourth package is already in the plan, and House Majority Leader Nancy Pelosi states it should focus on “recovery.”
And, even after that, U.S. President Donald Trump called for a $2 trillion “infrastructure bill” as the interest rates are currently at “zero.” In his view, this bill, which he said has been awaited for decades, should focus on jobs and rebuilding the country’s infrastructure.
That for sure gave the much-awaited boost to the stock market, but as Novogratz pointed out, it will eventually debase fiat.
At the time of writing, Bitcoin price was rising by 1.22% to $6,787.54.