Bitcoin and the broader cryptocurrency market have been trending sideways for the past month with no sign of bullishness at this point. Not everyone is bearish in the market however, Galaxy Digital CEO Mike Novogratz expects the market to turn bullish soon and gives reasons as to why he thinks this will happen.
The reasons why Bitcoin is starting a bullish run
Novogratz what interview On CNBC’s Squawk Box on Thursday, June 1, he gave his views on the bitcoin and cryptocurrency markets and where he expects the market to go. Contrary to the current market trend, the CEO is still very bullish on digital assets and expects a bullish trend stemming from some developments in the market at the moment.
He pointed to increasing adoption from Asia as countries such as Hong Kong begin to open up new ways for retail investors to participate in the market. Not only that, but WeChat, China’s largest social messaging platform, has begun to provide Bitcoin price data to users, allowing them to check the current price of BTC in yuan.
Both, Novogratz says, will be catalysts for the bitcoin bull market. “Crypto is lacking in knowledge right now. There is a constant supply from retail. We see it across all platforms,” Galaxy Digital CEO told CNBC.
BTC struggles to hold $27,000 | Source: BTCUSD on TradingView.com
Expect a turnaround from the Fed
In his interview, Novogratz also mentions the fact that he expects the Fed to change direction later this year, which he believes will be good for Bitcoin. As the Fed maintains its hawkish stance to tackle inflation, risk assets such as stocks and BTC continue to suffer but this could change quickly if the Fed becomes dovish.
The CEO expects this to happen sometime in October 2023 and this, he says, will lead to a bullish race for digital assets in the space. As the Federal Reserve cuts interest rates, interest in Bitcoin will increase, which will lead to a rapid rise in the price. Given this, Novogratz predicts that investing in Bitcoin will be a better decision than buying a one-year T-bill.
As for the institutions, he points to the fact that they have reduced their participation in the market but that does not mean that they have gone. Novogratz believes that institutions will return to phase two when “one of two things happen. They either need firm, sensible rules in place for cryptocurrencies. Or they need Republicans to win the US election next year.” He also added that “cryptocurrency almost overnight became a frenzied partisan affair, which is exactly what the industry didn’t want or need.”
At the time of writing, Bitcoin is still struggling in the market, as it is trading at $27,087 with a slight gain of 0.77% in the last day.