Year to date, Bitcoin has surged 30% from the $7,000s to $9,500, data from Blockonomi shows — yes, a multi-thousand-dollar price surge took place in a few weeks’ time.
The cryptocurrency market’s seeming revival from the bear market seen in 2019 has convinced investors that another bull run is on the horizon again.
Why is Novogratz Bullish On Bitcoin?
Last decade, Novogratz became one of the most prominent people to delve into the Bitcoin space, having had a lot of clout on Wall Street. Due to this, many have looked to him, asking for his sentiment on cryptocurrency on a regular basis.
This trend continued just today when Bloomberg released an interview with the “billionaire Bitcoin maven,” as the outlet branded him.
He told the outlet that he remains optimistic about the prospects of Bitcoin for a number of reasons.
- The first he cited is the large amount of liquidity in the U.S. economy and the seeming debasement of the U.S. dollar, seemingly agreeing with the sentiment that the Federal Reserve and other central banks around the world are creating an environment in which Bitcoin’s scarcity will be proven by the inflation of fiat money.
- Next, Novogratz said that his firm agrees with the idea that Bitcoin is “digital gold,” or a digital store of value in other words. While he didn’t mention if he sees geopolitical risk factors on the horizon, the investor said that Bitcoin rallying through the Iran and coronavirus situations proves that it can act as a viable asset in trying times.
- And lastly, he looked to the growing amount of “plumbing” in the crypto space, or rather, the infrastructure that investors can utilize to purchase Bitcoin or get involved in other ways. Indeed, Fidelity Investments, ING, Intercontinental Exchange (through Bakkt), and other mainstream financial institutions are dabbling in Bitcoin.
Although he didn’t give a concrete price prediction on Bitcoin in this Bloomberg discussion, he has talked price predictions in other interviews and media.
For instance, he told CNN last year that he expects Bitcoin to strongly appreciate into the end of 2020 and early 2021. He suggested that by the start of next year, the BTC price is likely to be past $20,000, at new all-time highs.
He also wrote in a “2020 prediction” tweet that he expects for Bitcoin to finish this year over $12,000, which is notably muted compared to his statement on CNN.
Far From the Only Bull
Novogratz is the latest cryptocurrency analyst to have aired bullish sentiment on Bitcoin via mainstream media.
Tom Lee — co-founder of New York market research firm Fundstrat Global Advisors — earlier this week gave CNBC “Fast Money” viewers three main factors why his firm believes BTC will appreciate 100% this year:
- The upcoming 2020 Presidential Election in the US, which he claims will decrease regulatory pressure on Bitcoin
- The upcoming Bitcoin block reward reduction, known as a “halving,” that will decrease the inflation rate of the asset by 50%;
- The rising geopolitical tensions, especially in Iran.
Anecdotally, Lee added that his firm has been seeing an increasing interest from clients regarding cryptocurrency. While Fundstrat is a research firm, the most interest from clients would suggest that there is a growing investment demand for Bitcoin.