Galaxy Digital CEO Mike Novogratz is adjusting his Bitcoin (BTC) outlook as new players continue to enter the world of blockchain technology.
In Galaxy Digital’s Q4 earnings call, the billionaire says that in light of continued industry innovation plus increased interest from the general investing public, he expects Bitcoin to exceed his previous 2022 price predictions.
“I had said originally, I thought this would be a rangy year, $30,000 to $50,000 in Bitcoin and whatnot.
But given the adoption cycle I’m seeing and given the way markets trade and how I just see new people wanting to get in, the innovation we’re seeing in Web3 and in the metaverse space, I’ve gotten more constructive than I was at the beginning of the year.
And so it wouldn’t surprise me to see crypto significantly higher by the end of the year.”
Novogratz next discusses how Russia’s ongoing incursion into Ukraine and the cascade of international sanctions that followed might reorient people’s perspectives about cryptocurrency moving forward.
“We had a war break out in the Ukraine, where Russia has invaded. That’s interesting. It creates lots of inflationary pressures through the commodity cycle. It creates lots of risk, risk-off behavior and anxiety, but it also adds to a narrative in crypto, which is really positive and continues to accelerate adoption.
This has been a year of push-pulling crypto with macro headwinds and adoption tailwinds… Part of its story [involves] when Europe and the US told Russia, those [cash] reserves really aren’t your reserves.
For the first time in my investing career, people said, ‘Wait a minute. If that could happen there, what about China and its $1.4 trillion of treasuries?’
The story for Bitcoin and other crypto assets got more of a tailwind. I don’t think that is going backwards. I think we’re in a Balkanized world and where crypto assets fit in is going to continue to be debated, but it’s going to grow in scope.”
The investor concludes by highlighting Treasury Secretary Janet Yellen’s recent discussion about cryptocurrencies during a CNBC interview.
“It should not be missed that Secretary Janet Yellen in her last comments took a much more sanguine approach towards crypto, right? The political winds in DC are changing.
I think Democrats who had been more opposed to crypto are realizing that voters really like this asset class. And so, you’re seeing a shift in regulatory front.”
At time of writing, Bitcoin is up 4.04% and trading for $46,518.
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