Mike Novogratz predicts further growth for Bitcoin despite the potential for a short-term correction.
Bitcoin’s Bullish Trajectory
Galaxy Digital CEO Mike Novogratz expressed confidence that Bitcoin’s approaching $100,000 is just the start of its upward journey. In a recent appearance on CNBC’s Squawk Box, Novogratz called Bitcoin’s rise to six figures “almost inevitable,” noting that the market is currently in a phase of price discovery with high demand and limited supply. He attributes much of this optimism to the broader crypto adoption, including President-elect Donald Trump’s support for digital assets.
Rise Due to High-Profile Buyers
Novogratz also pointed to high-profile buyers like MicroStrategy and its CEO, Michael Saylor, as major crypto purchasers contributing to Bitcoin’s rise. The “paradigm shift” sparked by political and institutional backing is seen as a catalyst for future price surges. The crypto community has a positive outlook due to pro-crypto efforts by the new US administration.
Risks of Market Leverage
Despite the bullish outlook, Novogratz warned about the current market leverage, which is at an all-time high. With Bitcoin futures showing significant open interest, he cautioned that a correction, potentially bringing prices back down to $80,000, could occur before continuing its upward trajectory.
Outlook for Bitcoin
Although some market players have experienced major success, like MicroStrategy, whose stock price has surged 650% this year, Novogratz recommended caution for investors and traders. He advised investors to focus on Bitcoin itself rather than crypto-linked equities, which he sees as volatile and speculative.
Disclaimer:
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