According to CEO of Galaxy Digital, Mike Novogratz, China’s less hostile stance towards the crypto industry could potentially cause a rise in bitcoin’s price in the coming months. Several Hong Kong subsidiaries of leading Chinese banks have recently offered their services to local cryptocurrency businesses as well, which could indicate a positive trend.
Novogratz’s Positive Outlook
Novogratz believes that certain factors could contribute to a further increase in cryptocurrency market prices. One of these is the idea that “all the selling that needed to get done was done.” This is in reference to last year’s negative events like the Terra crash, 3AC bankruptcy, and FTX meltdown which had caused many investors to part with their holdings.
Novogratz thinks the crypto market could surpasse a substantial price increase in the following months as he predicts that bitcoin could reach $30,000 at the end of this month.
Furthermore, China’s positive stance towards cryptocurrency and recent services provided by The Bank of China, the Bank of Communications, and the Shanghai Pudong Development Bank to domestic digital entities could also be a positive indicator for a rise in cryptocurrency market prices.
However, Novogratz expressed his concern about the US regulator’s tight grip on the crypto industry. He believes that it pushes people offshore and will hinder America’s chance to lead the industry.
Disagreeing with Steve Hanke
Economist and critic of the crypto industry, Steve Hanke, recently described bitcoin as a “highly speculative asset” and “not a currency.” He also accused it of being unstable and could be used in scams. Novogratz opposed Hanke’s comments and urged him to look at bitcoin’s performance in the past few years, where it has been “safer” than shares of JPMorgan Chase & Co and Google.
Steve it has outperformed all assets ytd, over 2 years and 3 years on a risk adjusted weighting (sharpe ratio) It’s been safer than JPM and Google. Run the numbers yourself.
— Mike Novogratz (@novogratz) March 28, 2023
