Mike Novogratz – the head of bitcoin hedge fund Galaxy Digital – says that bitcoin “needs to rally this year.”

Novogratz Is Still Confident in BTC

At the time of writing, economies around the world are suffering at the hands of an ongoing coronavirus pandemic that has stirred fear in the hearts of men. Many are wondering if things could recover in due time, while others remain bearish and claim that the $2 trillion stimulus package recently approved by the U.S. Senate won’t be enough to push things in the right direction.

Some, however, take a different approach. With the approval of the stimulus bill by “one half” of Congress in America, some believe that things are heading north once again, and that bitcoin will travel north with these markets, though it’s not likely to happen overnight, and several factors are likely to contribute to bitcoin’s overall success in the coming months.

Simon Peters – an analyst with cryptocurrency exchange e-Toro – discussed the new bill in an interview, claiming:

This effectively pumps billions of dollars in the market, so some investors may be wary that the dollar will lose its value and are moving back into bitcoin to hedge against inflation. Crypto assets have been used in a similar way in other economies plagued by hyperinflation, such as Venezuela and Argentina.

Agreeing with Peters is Christel Quek, an executive with Bolt Global. She comments:

It could be very likely that traditional investors are seeking to regain liquidity through profit hunting from crypto assets as equities are negative worldwide.

Peters is confident that so long as investors keep coming back to bitcoin, the currency is likely to keep pumping over the following weeks, though he’s unsure if the asset will be able to stand its ground at first. He states:

Following it’s previous falls, the price of bitcoin has been tested and held above the $5,800 – $6,000 mark on a number of occasions over the last week, so we could get back to $7,000 in the coming days. However, we’ll have to see if the markets have enough momentum to break and importantly stay above this level, or whether there is a further price retreat.

One of the Biggest Drops… Ever

Mike Novogratz has always been a bitcoin bull, and he’s confident in the currency’s ability, though he says a rally needs to happen this year if the currency is ever going to recover from its recent bout with death.

In looking at the recent drops, Novogratz says that bitcoin was ravaged by a “velociraptor,” comparing the falls with one of the most notorious and destructive dinosaurs known to man. The currency was traversing through the mid-$8,000 range at the beginning of March but had fallen to roughly $3,900 less than two weeks later. That’s a heavy slip considering how little time was in play.

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