Bitcoin Set to Rally Near Year-End: Michael Novogratz

• Michael Novogratz is still bullish on Bitcoin despite its worst month since late last year.
• Novogratz attributes recent weakness to a lack of participation from large-scale buyers or institutional investors.
• He believes that if the U.S. economy slows, the Fed will cut interest rates and Bitcoin will be off to the races.

Michael Novogratz Bullish on Bitcoin

Galaxy Digital CEO Michael Novogratz is still bullish on BTC despite its 8% drop in May, its worst month since November. On CNBC’s “Squawk Box” he cited two developments as meaningfully positive for Bitcoin: WeChat enabling bitcoin and crypto trading, and Hong Kong officially allowing crypto trading for retail customers through regulated exchanges. Furthermore, BTC is up 65% year-to-date which makes it one of the best performing assets this year.

Rate Cuts Positive for Bitcoin

Novogratz also expects Bitcoin to benefit once the U.S. Federal Reserve starts to cut interest rates which he sees likely in the final quarter of 2023. He would choose BTC over a 5% guaranteed return on Treasury Bills if he had to invest $10,000 right now due to this potential upside in price appreciation when rate cuts occur.

Asian Adoption of Crypto

Novogratz highlighted how Asian adoption of crypto is increasing with WeChat enabling bitcoin and crypto trading and Hong Kong officially allowing crypto trading for retail customers through regulated exchanges – both being big deals according to him..

Halving Next Year

Looking further ahead, the total supply of Bitcoin is set to cut in half next year which has historically been a tailwind for price appreciation.

Conclusion

Michael Novogratz remains optimistic about Bitcoin despite recent sell-off due to several factors including Asian adoption, Federal Reserve rate cuts and halving next year all being positive catalysts for price appreciation going forward