Mike Novogratz: BTC Will Hit a New All-Time High
In a recent interview with CNBC, he commented that the currency could exit 2020 having hit a new all-time high. The previous record for bitcoin is just shy of $20,000, which the world’s number one cryptocurrency by market cap reached at the end of 2017. He’s confident that in approximately ten months, the currency will strike an even higher range.
Right now, bitcoin feels a little frenzied, and we could see it surge up, but I think by the end of the year, we could certainly take out the old highs, or at least we go to the old highs.
He’s confident we’ll see further price bumps throughout the rest of the year.
His words go against several other analysts who claim that the currency could potentially end 2020 at a smaller number. Recently, a technical chart indicator suggested that the “13” candle was appearing once again on bitcoin charts, which meant that bitcoin could reach as low as $8,500 or $7,700 in the coming weeks.
In addition, the currency is not doing as well as before, having recently dropped back into the high $9,000 range. Over the past few weeks, bitcoin has been trading beyond $10,000, which made many people believe that the bulls were taking over in spades. Unfortunately, it doesn’t look like this good fortune is lasting, and the drop – even if it’s temporary – is a reminder that bitcoin is still a flawed unit of currency.
Still, Novogratz isn’t letting this get in the way. He says that one of the big things that’s really beginning to assist bitcoin in its financial journey is the idea that it is somewhat comparable to gold. He says that like the precious metal, many are now viewing it as a method of retaining wealth during periods of economic uncertainty.
Coming out of the ashes, bitcoin has really developed its own lane as a store of value… The Chinese are about to pull two giant bazookas out and stimulate the heck out of the second-largest economy in the world. That’s going to be good for Chinese stocks at one point, but that stimulus always finds its way around the world, so oil prices end up coming back up, and you get another surge of growth.
The Halving Will Do Wonders for BTC
He also expressed great enthusiasm about May’s upcoming halving, an event which allegedly takes place every four years. The process cuts the rewards earned by bitcoin miners in half, thereby making the currency rarer and more valuable. He’s confident that bitcoin could potentially reach unprecedented levels as soon as the halving occurs.
He says the having places a “limit on inflation,” thereby driving things like cryptocurrencies to new peaks.