• Michael Novogratz, the CEO of Galaxy Digital, is bullish on Bitcoin despite it having its worst month since November.
• He attributes the recent weakness to a lack of institutional buyers but sees two positive developments that could impact Bitcoin’s price.
• Novogratz believes that if the US economy slows down then the Fed will cut rates and Bitcoin will be off to the races.
Michael Novogratz Bullish on BTC Despite Weakness
Bitcoin ended May down 8.0% – its worst month since November. However, Galaxy Digital CEO Michael Novogratz is still bullish on BTC and shared his view on CNBC’s “Squawk Box” this morning.
Reasons For Weakness
Novogratz attributed the recent weakness in BTC to a lack of participation from large-scale buyers or institutional investors.
Novogratz also pointed out two recent developments that he believes are meaningfully positive for Bitcoin – WeChat enabled bitcoin and crypto trading and Hong Kong officially allowing crypto trading for retail customers through regulated exchanges.
Rate Cuts Will Benefit BTC
Furthermore, Novogratz expects Bitcoin to benefit once the US Federal Reserve starts cutting interest rates which he sees likely in the fourth quarter of this year. He argued that he would pick BTC over a 5.0% guaranteed return on Treasury Bills if he had to invest $10,000 right now due to rate cuts being positive for Bitcoin.
Halving Impact On Price
Moreover, next year will bring about another tailwind for Bitcoin as its total supply is set to cut in half which has historically been positive for price appreciation.