Mike Novogratz Explains Why Bitcoin Will Not Drop Below $40K

Mike Novogratz, the CEO of Galaxy Digital has bullish out for Bitcoin (BTC) despite the recent downtrend of the leading crypto asset in past few weeks.

In a recent interview on CNBC, Novogratz shared his thoughts on why Bitcoin is not performing as well as Ethereum (ETH) at the moment.

“If you look at the Ethereum price, Ethereum still trades bullish. People see Ethereum as a technology bet and Bitcoin as a debasement of fiat currency bet.”

Despite Bitcoin’s sluggish recent performance, Novogratz believes in the prospects of Bitcoin as he names three macro trends that can keep the leading digital asset from slipping below the $40K level. 

“There are new players lining up to participate in this crypto economy, from the Mid East to all over the US to pension funds and so there’s a bid below the market. It’s an institutional bid. They’ve done their work. They’re waiting to participate.

I think people now have woken up that crypto is an asset class. That Bitcoin is part of a crypto portfolio. That even if the Fed starts acting more hawkish, it’s an amazingly complicated plane to land for Powell and Yellen.

We’ve got a political environment that wants to spend more money. We have a monster budget deficit and if you raise rates too fast, you’re going to sink the economy, and no politician wants to do that and so we lost apolitical Fed chairman.

All Fed chairmen are now political just based on the deficit. This idea of independent central banking is now farce, and so Powell can act tough for a while because he just got reappointed, but if he starts doing things that put Biden’s reelection at risk, you’re going to hear something.”