- Bitcoin ended May down 8.0%. This is his worthy month since November.
- Galaxy Digital CEO Michael Novogratz remains bullish on BTC.
- He explained why on CNBC’s “Squawk Box” this morning.
Bitcoin has just had its worst month since late last year, but Galaxy Digital CEO Michael Novogratz remains optimistic about the cryptocurrency.
Novogratz Shares His Views on Bitcoin
Novogratz attributed BTC’s recent decline to the lack of participation of large buyers and institutional investors.
But the billionaire investor spoke about two recent developments on CNBC’s show this morning.squawk box”he called it a meaningful positive for Bitcoin.
WeChat has made it possible to trade Bitcoin and cryptocurrencies. That’s a big deal. Hong Kong officially allows cryptocurrency trading for retail customers through regulated exchanges. So we’re seeing adoption from Asia.
Novogratz also noted that BTC is still up 65% year-to-date, despite its plunge in May, making it one of the best performing assets since early 2023.
Rate cuts are good for Bitcoin
Novogratz also expects Bitcoin to benefit if the US Federal Reserve takes action. cut interest rates He expects that to happen, probably in the final quarter of this year.
To this end, the CEO of Galaxy Digital said that if he had to invest $10,000 right now, he would definitely choose BTC over the 5.0% return guarantee on Treasury bills.
The US economy will slow down. . . If we see a full-blown economic slowdown in the second half of this year, the Fed will cut interest rates by October and the cryptocurrency market will be in full swing.
Furthermore, going forward, the total supply of bitcoin is set to halve next year, which has historically been a tailwind for rising prices.