Bitcoin Bull Novogratz: BTC Will Be Off To The Races Near Year-End

• Michael Novogratz, CEO of Galaxy Digital, is bullish on Bitcoin despite its 8.0% decline in May.
• He attributes the recent weakness to a lack of institutional investor participation and highlights two positive developments in Asian adoption.
• Novogratz believes that if the US economy slows down in the second half of 2023, the Fed will cut rates which will cause Bitcoin prices to rise.

Michael Novogratz Bullish on Bitcoin Despite Price Decline

Bitcoin ended May with an 8.0% decline – its worst month since November – but Michael Novogratz – Chief Executive of Galaxy Digital is still optimistic on BTC’s future performance. This morning on CNBC’s “Squawk Box”, he shared his views about why he remains positive despite the recent price drop.

Lack Of Institutional Investor Participation

Novogratz attributed the recent price dip to a lack of large-scale buyers or institutional investors participating in the market. He also highlighted two recent developments which could potentially be meaningfully positive for Bitcoin: WeChat enabling crypto trading and Hong Kong officially allowing retail customers to trade cryptocurrencies through regulated exchanges.

Fed Interest Rate Cuts Will Help Boost Prices

The billionaire investor believes that once the U.S Federal Reserve starts cutting interest rates – something he sees likely happening in the fourth quarter of this year – it will benefit BTC prices as well as other cryptocurrencies. He went on to say that if given $10,000 right now, he would definitely pick BTC over a 5% guaranteed return from Treasury Bills due to this potential rate cut boost that crypto may receive soon.

Halving Event Could Push Prices Higher

In addition to this, Bitcoin is currently up 65% so far this year which makes it one of the best performing assets since January; and next year’s halving event could further push prices higher as has been seen historically when such events have occurred before.

Conclusion

Despite its weak performance last month, Michael Novogratz remains bullish on Bitcoin due to various factors including increasing adoption from Asia, potential interest rate cuts by Federal Reserve and next year’s halving event which all have potential to drive prices higher in future months and years