Billionaire investor Michael Novogratz said worldwide “liquidity pump” from stimulation packages will continue driving bitcoin’s price higher. He anticipates that the price of bitcoin to achieve $20,000 this season, fueled by international investors changing into the cryptocurrency.
Mike Novogratz’s Bitcoin Prediction
Galaxy Digital CEO Michael Novogratz stated on Tuesday that bitcoin and gold have more space to increase and will continue to grow as a result of international “liquidity pump,” given by authorities’ stimulation packages, coupled with an influx of retail investors.
“The liquidity story isn’t going to go away. We’re going to get a big stimulus,” that the billionaire investor informed CNBC, including that “it doesn’t look like the Federal Reserve is going to raise rates.” Following the CARES Act, the $2.2 trillion coronavirus help stimulation package which President Donald Trump signed into law in March, Republicans and Democrats have proposed further stimulation packages. The Democrats suggested the $3 trillion HEROES Act while the Republicans introduced the $1 trillion HEALS Act on Monday.
Additionally, “Bitcoin still has a lot of retail interest in it,” Novogratz explained, including that he sees stock investors changing back to golden and bitcoin.
Novogratz anticipates bitcoin’s price to be at $14,000 at the subsequent 3 months, highlighting that it might easily reach $20,000 at the close of the year. His year-end price prediction agrees with various other people, including an extensive evaluation by Crypto Research Report.
Bitcoin is now trading at roughly $11,258, up approximately 17% since last week and 54% since the beginning of the year. Meanwhilethe price of gold hit an all-time high on Monday, climbing more than 7% because the start of the month.
Novogratz stated the majority of his investments are in bitcoin, gold, silver. Noting that an estimated 20% of his net worth is in bitcoin, he added: “I want it to go a lot higher.” As for gold, he said it is more of a 5% position for him.
The billionaire investor further emphasized that he is starting to see institutional investors move into bitcoin. However, unlike gold investing, they face a learning curve when trying to invest in cryptocurrency. “Bitcoin is still hard to buy. If it was easier to buy, it would be a lot higher,” he previously said. “Gold has been around for 3,000 years, it’s pretty easy to buy,” Novogratz opined. “There’s an adoption game in bitcoin that you don’t have in gold. But I like them both.”
Others have also reported seeing increased institutional demand for cryptocurrency, particularly bitcoin. Grayscale Investments said that in the second quarter, 84% of its almost $1 billion inflow into crypto investment products were from institutional investors. Moreover, famed hedge fund manager Paul Tudor Jones recently confirmed that he has almost 2% of his assets in bitcoin.
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