Mike Novogratz: BTC Is Still in Bullish Territory
Billionaire investor and former hedge fund manager Mike Novogratz has always been a big fan of bitcoin along with other forms of crypto. In a recent interview, he commented about what has made the world’s primary form of digital currency last so long, and he talked about what was potentially causing the asset to surge the way it has.
Mike Novogratz: This Is Just a Small Correction
At the time of writing, the price of bitcoin has fallen by more than $15,000 from its recent all-time high of about $64,000. This was accomplished not long after Coinbase – one of the world’s largest and most popular cryptocurrency exchanges – began trading on the Nasdaq, but now it looks like some of that hype has died down. Bitcoin has taken a monster dive, but according to Novogratz, this is nothing but a small correction, and bitcoin is still very much traversing through bullish territory.
He claims that there are many things keeping it afloat. One of the big things is that the American Congress – along with outside legislative bodies – have tried to keep their economies up by continuously printing money. This has led to serious inflation and drops in value for USD and other forms of fiat. People do not trust this action. They see it as irresponsible and believe that this is going to lead to further problems down the line.
Thus, they have turned to bitcoin as their go-to wealth management product. They believe that the currency is no longer just a speculative asset that could make them rich overnight. Rather, it is now being viewed as a hedge tool that can keep one’s portfolio safe during times of strife.
Novogratz says that the chances of avoiding future economic turmoil due to the constant stimulus spending and the endless printing of money are rather slim. In an interview, he states:
The crypto markets are telling us that there is a growing probability that they will not be able to land the plane… Bitcoin is a report card on how central banks and minsters of finance are doing.
Aside from the fear that retailers and individual people are feeling, Novogratz also says that widespread adoption has led to bitcoin’s massive price surge, given that companies such as Tesla and PayPal – both worth billions of dollars – have agreed to allow bitcoin and crypto payments for goods and services, thereby bringing one of the asset’s goals to life. Bitcoin has always been built for payments, but its volatility has inherently gotten in the way, and this has caused many stores and enterprises to say “no.”
How to Stay In
He tells his listeners what they need to do if they are looking to hold a comfortable position in the growing world of crypto trading:
Simple advice: buy bitcoin, buy Ethereum, then do your homework on a few stocks.
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