Renowned investor and Galaxy Digital founder Mike Novogratz has projected a significant uptick in Bitcoin (BTC) value, foreseeing a climb to $70,000 should the U.S. Securities and Exchange Commission (SEC) approve spot Bitcoin exchange-traded funds (ETFs).
Novogratz’s bullish outlook emerged during an exclusive Bloomberg interview on November 29, 2023. Expressing unwavering optimism, the Galaxy CEO highlighted the potential market impact and psychological shift likely to accompany the government’s endorsement of spot Bitcoin ETFs.
Bitcoin’s Projection Amid ETF Prospects
During the interview, Novogratz affirmed the possibility of Bitcoin revisiting its previous highs within a year, emphasizing the critical role an SEC-approved spot Bitcoin ETF could play in driving the cryptocurrency’s value to historical peaks.
He asserted that the Bitcoin market’s dynamics were poised on the edge, indicating a new inflow of fresh money influencing the largest cryptocurrency’s trajectory. Novogratz anticipated a shift in market psychology upon the government’s green signal for Bitcoin purchases, potentially driving an increase in value.
Bloomberg analysts projected the potential approval of a spot Bitcoin ETF by January 10, 2024. However, SEC Chair Gary Gensler’s stance on the matter remains ambiguous, leaving uncertainties surrounding the ETF discussions. Notably, analysts expressed worries about potential last-minute rejections of pending spot Bitcoin ETF applications, a scenario that Bloomberg ETF analysts described as “amazingly sadistic.”
Novogratz’s Addresses Binance-DOJ $4.3 Billion Settlement
In the same interview, Novogratz commented positively on Binance’s $4.3 billion settlement with the United States Department of Justice (DOJ). He regarded the settlement as a step towards reducing risks for Binance and the wider cryptocurrency industry. Novogratz emphasized that the settlement alleviated previous apprehensions regarding Binance’s operations among investors and users.
“I think they’re de-risked in lots of ways. People were worried about dealing with Binance. There’s a lot less to worry about now.”
He addressed concerns around Binance’s compliance issues, stating that the resolution had mitigated worries about dealing with the exchange. Novogratz reiterated the importance of dealing with entities prioritizing regulatory compliance while noting that traditional finance has faced regulatory challenges recently.
Bitcoin’s Projected Trajectory
Novogratz further anticipated developments for Bitcoin, anticipating an ETF approval in the United States.
He suggested that investment and asset management firms, including BlackRock, Fidelity, ARK Invest, and Galaxy Digital, would promote Bitcoin adoption if an ETF approval materializes. According to Novogratz, this concerted effort would significantly elevate Bitcoin’s price, especially amid potential rate cuts by the Federal Reserve.
“The price is going to be significantly higher, especially at a time when the Fed is probably cutting rates. Could we go to old highs by this time next year? Of course, we could.”
The investor highlighted Bitcoin’s halving event in 2024 and anticipated it to weave a compelling narrative for the cryptocurrency. Additionally, he underscored the impact of the 2024 U.S. elections on Bitcoin’s future, citing global fiscal irresponsibility as a primary driver compelling people to invest in Bitcoin.
Novogratz concluded by emphasizing Bitcoin’s potential to thrive amid uncertainties, banking on its appeal as a hedge against global fiscal instability, a key factor propelling initial investments in the cryptocurrency.
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