Bitcoin and the broader cryptocurrency market have been trending sideways for the last month with no indication of an upside at this point. However, not everyone is bearish on the market as Galaxy Digital CEO Mike Novogratz expects the market to turn bullish soon, and he gives reasons for why he believes this will happen.
Reasons Why Bitcoin Will Begin A Bull Rally
Novogratz was interviewed on CNBC’s Squawk Box on Thursday, June 1, where he gave his opinions on the Bitcoin and crypto market and where he expects the market to go. Contrary to the current market trend, the CEO remains very bullish on the digital asset and expects a bull trend going off some developments in the market right now.
He pointed toward the rising adoption from Asia as countries such as Hong Kong begin opening up new ways for retail investors to participate in the market. Not only this but the largest social messaging platform in China, WeChat, began offering Bitcoin price data to users, allowing them to check the current price of BTC in yuan.
Both of these, Novogratz says, will be a catalyst for the bitcoin bull market. “Crypto’s lackadaisical right now. There’s a constant bid from retail. We’re seeing it through all the platforms,” the Galaxy Digital CEO told CNBC.
BTC struggles to hold $27,000 | Source: BTCUSD on TradingView.com
Expecting A Turn From The Federal Reserve
In his interview, Novogratz also points to the fact that he expects that the Federal Reserve will change direction later this year, which he believes would be good for Bitcoin. As the Fed maintains its hawkish stance to tackle inflation, risk assets such as stocks and BTC continue to suffer but this could quickly change if the Fed becomes dovish.
The CEO expects this to happen sometime in October 2023 and this, he says, will trigger a bull run for digital assets in the space. As the Fed drops interest rates, so will interest in Bitcoin rise, leading to a rapid surge in price. Given this, Novogratz expects investing in Bitcoin to be a better decision than buying a one-year T-bill.
As for institutions, he points to the fact that they have reduced their participation in the market but this does not mean they’re gone. Novogratz believes the institutions will return to the second when “one of two things happens. You either need settled and sensible rules in place for crypto. Or you need the Republicans to win next year’s U.S. elections.” He further added that “Crypto has almost overnight become a crazily partisan issue, which is exactly what the industry didn’t want or need.”
At the time of writing, Bitcoin is still struggling in the market, trading at $27,087 with meager gains of 0.77% in the last day.