Bitcoin and the broader cryptocurrency market have been trending sideways for the past month with no sign of an upside at this point. However, not everyone is bearish on the market as Galaxy Digital CEO Mike Novogratz expects the market to be bullish soon, and he gives reasons why he believes this will happen.
Reasons Why Bitcoin Will Start A Bull Rally
Novogratz was interviewed on CNBC’s Squawk Box on Thursday, June 1, where he gave his opinions on the Bitcoin and crypto market and where he expects the market to go. Contrary to the current market trend, the CEO remains very bullish on the digital asset and expects a bullish trend to emerge from some developments in the market today.
He points to increased 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 this but China’s largest social messaging platform, WeChat, has started offering Bitcoin price data to users, allowing them to check the current price of BTC in yuan.
Both of these, Novogratz said, could be a factor in bitcoin’s bull market. “There is a lack of Crypto right now. There is always a bid from retail. We see it on all platforms,” ​​the CEO of Galaxy Digital told CNBC.
BTC struggles to hold $27,000 | Source: BTCUSD on TradingView.com
Expecting A Turn From The Federal Reserve
In his interview, Novogratz also pointed to the fact that he expects the Federal Reserve to change direction later this year, which he believes is good for Bitcoin. As the Fed continues its hawkish stance on dealing with inflation, risk assets such as stocks and BTC continue to suffer but this can easily change if the Fed becomes dovish.
The CEO expects this to happen sometime in October 2023 and this, he said, will trigger a bull for digital assets in the space. As the Fed drops interest rates, Bitcoin interest rates rise, leading to rapid price increases. Because of this, Novogratz hopes that investing in Bitcoin is a better decision than buying a one-year T-bill.
On the part of institutions, he pointed to the fact that they have reduced their participation in the market but this does not mean that they no longer exist. Novogratz believes that the institutions will return to the second if “one of two things happen. You need order and reasonable rules for crypto. Or you need the Republicans to win the US elections next year. He added that “Crypto has almost overnight become a crazy partisan issue, which is exactly what the industry doesn’t want or need.”
At the time of writing, Bitcoin is still struggling in the market, trading at $27,087 with a small gain of 0.77% in the last day.
