- Mike Novogratz discussed the Bitcoin bull run in a recent BBC appearance
- According to Novogratz, the two main factors driving the rally are the macroeconomic environment and institutional adoption
- Bitcoin recently surpassed $30,000 for the first time
Mike Novogratz says macroeconomic environment and institutional adoption are driving the Bitcoin rally
Galaxy Digital CEO Mike Novogratz, who has become one of the most prominent cryptocurrency proponents after pivoting from a successful Wall Street career, recently appeared on the BBC to discuss Bitcoin’s impressive bull run.
The first factor that Novograz highlighted was the macroeconomic environment. Novogratz noted that widespread money printing has led many investors to trade their cash for other assets like gold, stocks, real estate – and Bitcoin.
However, Novogratz said that growing adoption is perhaps an even bigger driving factor behind Bitcoin’s big bull run. He mentioned PayPal’s entrance into cryptocurrency as a prime example:
»If I told you three years ago that Bitcoin was a hard asset, and macro hedge funds and insurance companies and asset managers would buy it, you’d be like »no, no, that’s kind of a fringe product«. In the last 3 years, that story has changed. And now we’re seeing places like PayPal, with 340 million customers, servicing Bitcoin and selling Bitcoin.«
Bitcoin’s limited supply is also helping boost prices, Novogratz said:
»As the institutions move in, there just is not a lot of supply. There are 21 million Bitcoins that will ever be mined, and that’s it.«
Fun on the BBC. pic.twitter.com/mTSNXMVceZ— Mike Novogratz (@novogratz) January 3, 2021
The influx of freshly-mined Bitcoin is slowing down every 4 years in what’s known as the Bitcoin halving. The third-ever Bitcoin halving happened in May of 2020, cutting the block reward from 12.5 to 6.25 BTC.
Bitcoin has been on a rampage ever since the second half of 2020. The world’s largest cryptocurrency cracked the $20,000 mark for the first time ever on December 16. From there on, it took less than two weeks for BTC to surpass $30,000. After peaking at almost $35,000 Bitcoin is now trading at around $31,100 following a retracement.
As Bitcoin continues to impress, it’s also enjoying more airtime in the mainstream press, Novogratz’s appearance on BBC being just one example. Leading financial newspaper Financial Times prominently featured Bitcoin on the cover of its international edition for January 4, 2021.
Just published: front page of the Financial Times international edition Monday January 4 https://t.co/0ANz1YQw27 pic.twitter.com/lN2t2CBKVU— Financial Times (@FinancialTimes) January 3, 2021
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