Crypto billionaire Mike Novogratz suggests that the recent surge in Bitcoin’s value is primarily attributed to widespread investor adoption of the cryptocurrency, rather than macroeconomic factors. According to him, the likelihood of Bitcoin dipping below $50,000 again is slim.
Speaking on CNBC’s “Squawk Box” on Wednesday, the crypto enthusiast stated, “I don’t think we go back below $50,000, $55,000. I think that’s the new floor, unless something dramatic happens.”
Novogratz highlighted that the usual drivers pushing Bitcoin’s value higher include investor demand and macroeconomic factors such as Federal Reserve policies and government debts and deficits.
He emphasized that the current rally is predominantly driven by traders’ adoption, spurred by regulators approving the first US spot Bitcoin ETFs in January, which has led to a surge in demand.
He said,”If you think about what’s going on in DC, this is a vote, right? The American people have just voted. They like bitcoin and they like digital assets”.
“We had a billion dollars of inflows last night into the ETF complex. As long as that is positive, the price is going to keep grinding higher. Once that becomes negative, you’ll see the first real correction”, he added.
At the same time, Bitcoin surged by 2.2% in Wednesday’s trades, reaching $73,679, buoyed by ongoing demand from spot bitcoin ETFs. On Tuesday, BlackRock’s iBIT bitcoin fund experienced a remarkable $849 million in inflows.
However, the CEO of Galaxy Digital also pointed out that while ETFs offer broader investor access to bitcoin, they only scratch the surface of the total market capitalization.
He approximated the total market capitalization of Bitcoin to be around $1.5 trillion, in contrast to the holdings of nearly a dozen ETFs totaling about $40 billion.
“So it’s still a very small percentage of bitcoin’s price,” Novogratz remarked.
The billionaire also expressed the opinion that politicians should not close the doors on initiatives or interests related to Bitcoin.
“Washington needs to get off the stick, get off the couch and start doing something ,right? This is going to be an issue for Democrats in this election who had been perceived to be standing in the way of Bitcoin”, he stated.
According to BI.
