• Mike Novogratz, CEO of Galaxy Digital believes that Bitcoin will reach $30,000 by the end of this month.
• His opinion is supported by China’s less hostile stance on the crypto industry and a number of Chinese banks offering services to local cryptocurrency businesses.
• He believes that all the selling in the sector has been done and further price rally could be triggered in the next several months.
Novogratz’s Bullish Forecast
Mike Novogratz – the CEO of Galaxy Digital – opined that China’s less hostile stance on the crypto industry could be one reason behind bitcoin’s possible price increase in the next several months. The Hong Kong subsidiaries of some leading Chinese banks have recently offered their services to local cryptocurrency businesses.
Novogratz thinks certain factors could trigger a further price rally for the cryptocurrency market. For one, he argued that „all the selling that needed to get done was done.“ Recall that the countless adverse events in the sector last year, including the Terra crash, the 3AC bankruptcy, and the FTX meltdown, hampered investor interest and caused many people to part with their holdings. Another bullish indicator could be positive winds coming from China. Beijing has recently given its green light on crypto developments happening in Hong Kong, while some leading Chinese banks are now offering their services to domestic digital asset entities.
China’s Stance on Crypto
Beijing has shown signs of being more amenable towards cryptocurrencies lately as it allowed its Hong Kong subsidiaries to offer their services to local digital asset-related firms. This move indicates an overall shift in attitude towards blockchain technology and digital assets within China’s economy which is expected to push prices higher in 2021–2022 timeframe as more international investors look for opportunities there.
Novogratz believes Bitcoin could tap $30,000 by this month should these trends remain steady throughout 2021–2022 timeframe and other factors stay constant like institutional investments into Bitcoin ETFs or new corporate treasury policies which allocate large chunks of cash into cryptocurrencies instead traditional investments such as stocks or bonds.
Adverse Events Last Year
But before such expectations can come true, it is important to note how much damage was inflicted upon investor confidence last year due various adverse events involving major players like Terra crashing or 3AC going bankrupt or FTX having meltdown issues – all these hurt investor sentiment which resulted in many people selling off their holdings at a loss or freezing them altogether until markets stabilize again (which they seem to be doing currently).
In conclusion we can say that although there was much damage done last year due various negative news stories involving major players within crypto industry – if current trends remain steady then there may very well be a chance for Bitcoin reaching USD 30K mark by end of this month according Novogratz who believes certain factors could trigger further price rally during 2021–2022 timeframe provided all other conditions stay same too like institutional investments into BTC ETFs etc