Former hedge fund manager and CEO of Galaxy Digital, Michael Novagratz, is firmly convinced of the cyber currency despite the Bitcoin price correction in May. The “Warren Buffett of cryptocurrencies” even sees new catalysts that could soon drive the Bitcoin price up.
• Novogratz assumes that institutional investors will take profits in May
• The approval of a Bitcoin ETF could drive the Bitcoin price
• SEC in transition – more likely to open up to crypto currencies
The Bitcoin Crash and Institutional Investors
The most popular cryptocurrency has had an extremely rapid couple of months. After a strong start to the year and a sustained rally, in which a new all-time high of 64,829 US dollars was achieved in April, the Bitcoin is a negative attitude by China after the re- emerging discussion about the environmental compatibility of the cyber currencyand profit-taking in general has fallen below $ 40,000 and is currently consolidating in a range between approximately $ 33,000 and $ 40,000. The previous bull market was partly attributed to increased institutional and large corporate investments. In an interview with Yahoo Finance, crypto expert Novogratz claims that many of these institutional investors cashed in in May. You had got into Bitcoin about a year earlier and made high profits, so profit-taking is quite normal, which increases the downward pressure on Bitcoin. The institutional investors manage most of the money, which is why they also play a central role for cryptocurrencies. The next wave of institutional investmentbut will come, Novogratz is certain. The FAZ headlined that institutions could not ignore Bitcoin, Ethereum and co.
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Bitcoin ETF as a price driver?
In addition to the return of institutional investors, Novogratz sees another central catalyst for the Bitcoin price: the approval of Bitcoin ETFs in the USA. The Securities and Exchange Commission (SEC) has several applications for approval already on the table. One of those applications for a Bitcoin ETF comes from Novogratz ‘company Galaxy Digital themselves. ETFs have become a favoured investment product of the masses and could mobilize a lot of money. If Bitcoin ETFs are approved, then you would see Bitcoin prices rising again, Novogratz said. He is sure that his own Bitcoin ETF will be approved by the end of the year. He is also optimistic about the appointment of Gary Gensler as the new chairman of the SEC. Gensler is known as a blockchain expert and is traded as more crypto-friendly than his predecessor Jay Clayton, according to Christian Stede of BTC-ECHO.
Hester Peirce: “The Bitcoin ETF is coming”
— Brook Mc $VET and $FREE (@BrookTheOne) June 18, 2021
Not only Novogratz assumes that it is only a matter of time before a Bitcoin ETF will come, SEC Commissioner Hester Peirce also expressed her confidence at the Crypto Finance Conference in St. Moritz. “I think we will see a Bitcoin ETF at some point,” she said in a talk with blockchain expert David Wachsman, as BTC-Echo reported. However, she didn’t want to commit to an exact time. Whether a Bitcoin ETF will come and whether Novogratz is right and the availability of such an ETF will drive the Bitcoin price remains to be seen for the time being.