Galaxy Digital CEO Mike Novogratz is unveiling when he believes Bitcoin (BTC) could act as the driving force behind a widespread crypto market rally.
The billionaire and Bitcoin bull tells his 465,100 Twitter followers the reasons why he believes the top crypto asset by market cap is being outperformed by the US stock market.
“Crypto trades poorly. This is going to be a period that tests peoples convictions. We will find a bottom when we do. The break from traditional finance markets is because we don’t have corporate buybacks and giant pension rebalancing that is causing this squeeze in equities.”
In the past week, the S&P 500 is up by nearly 10% from its May 23rd low, while Bitcoin is down nearly 5% over the same time frame.
According to Novogratz, Bitcoin traders should keep a close watch on the Federal Reserve as any shift in its hawkish stance can inspire a rally in the crypto markets.
“BTC will lead the next rally when the Fed pauses/flinches. Good projects will follow suit. This industry will not go away. We are just adjusting to the popping of an asset bubble caused by the Fed. Building revolutionary tech and change isn’t supposed to be easy.”
Novogratz earlier warned that altcoins are at risk of dropping by another 70%, but he believes that crypto will eventually recover.
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