Bitcoin and the wider cryptocurrency market have been trending sideways for the past month with no indication of an uptrend at this time. However, not everyone is bearish on the market as Galaxy Digital CEO Mike Novogratz expects the market to turn bullish soon and he gives reasons why he thinks it will.
Reasons why Bitcoin will start a Bull Rally
Novogratz was interviewed on CNBC’s Squawk Box on Thursday, June 1, where he gave his thoughts on the Bitcoin and crypto market and where he expects the market to go. Contrary to the current market trend, the CEO remains very bullish on the digital assets and expects an uptrend to emerge at this time due to some developments in the market.
He pointed to growing acceptance from Asia as countries like Hong Kong begin to open up new ways for retail investors to participate in the market. Not only this, but the largest social messaging platform in China, WeChat, started offering Bitcoin price data to users so that they could check the current price of BTC in yuan.
Both, says Novogratz, will be a catalyst for the bitcoin bull market. “Crypto is currently lax. There is constant bidding from the retail trade. We see it across all platforms,” the CEO of Galaxy Digital told CNBC.
BTC struggles to hold $27,000 | Source: BTCUSD on TradingView.com
Expect a turn from the Federal Reserve
In his interview, Novogratz also points out that he expects the Federal Reserve to change direction later this year, which he believes would be good for Bitcoin. While the Fed maintains its aggressive stance to address inflation, risk assets such as stocks and BTC continue to suffer, but this could soon change if the Fed eases up.
The CEO expects this to happen sometime in October 2023 and this, he says, will lead to a bull run for digital assets in the space. As the Fed lowers interest rates, so will interest in Bitcoin, leading to a rapid rise in the price. Given this, Novogratz expects investing in Bitcoin to be a better decision than buying a one-year T-bill.
As for institutions, he points to the fact that they have reduced their participation in the market, but that does not mean they are gone. Novogratz believes the settings will revert to the second when “one of two things happens. You either need firm and sensible rules for crypto. Or you need the Republicans to win next year’s US election.” He further added that “Crypto has become an insanely partisan issue almost overnight, which is exactly what the industry didn’t want or need.”
At the time of writing, Bitcoin is still struggling in the market, trading at USD 27,087 with meager gains of 0.77% on its last day.