Given the increasing likelihood of a US Securities and Exchange Commission (SEC)-approved Bitcoin exchange-traded fund (ETF), Michael Novogratz predicts that Bitcoin will rise to its previous peak within a year.
Can we reach previous highs by this time next year? Novogratz stated in a Wednesday interview with Bloomberg TV that he is the founder and CEO of Galaxy Digital Holdings Ltd. “Of course
In November 2021, Bitcoin hit a peak of about $69,000. However, it dropped 64% in value the following year due to several scandals and bankruptcy in the cryptocurrency sector. It is currently trading at over $38,000, having more than doubled in value this year.
Bloomberg Intelligence researchers predict that by January 10, the SEC will approve a spot Bitcoin ETF.
According to Novogratz, billions of dollars should enter the ETF market within the first year of the Bitcoin ETF’s launch, if not more. He made the argument that digital assets will also rise in the uncertain forthcoming election year.
Novogratz attributed price movements to marginal buying activity, highlighting the impact of new capital inflows. He anticipated that government approval of a Bitcoin ETF would trigger a positive psychological shift, stimulating broader Bitcoin adoption.
Novogratz has long celebrated the SEC’s approval of a Bitcoin ETF as evidence of institutional adoption of cryptocurrencies. Novogratz projected that the Federal Reserve will choose to lower interest rates in the first quarter of the following year, hence bolstering the industry’s expansion during the ensuing 18 months, during Galaxy’s third-quarter results conference call in November.
As previously stated, Novogratz anticipates that by the end of 2023, the SEC will approve a Bitcoin ETF. Invesco and Galaxy have teamed up to plan the introduction of this product.