Michael Novogratz says Bitcoin will be ‘off to the races’ near year-end

Bitcoin ended May down 8.0% – its worth month since November.
Galaxy Digital CEO Michael Novogratz is still bullish on BTC.
He explained why this morning on CNBC’s “Squawk Box”.

Bitcoin just had its worst month since late last year but Michael Novogratz – the Chief Executive of Galaxy Digital is keeping optimistic on the cryptocurrency.

Novogratz shares his view on Bitcoin

Novogratz attributed the recent weakness in BTC to a lack of participation from large-scale buyers or the institutional investors.

But the billionaire investor talked of two recent developments this morning on CNBC’s “Squawk Box” that he dubbed meaningfully positive for the Bitcoin.

WeChat enabled bitcoin and crypto trading. That’s a big deal. Hong Kong is officially allowing crypto trading for retail customers through regulated exchanges. So, we’re seeing Asian adoption.

Novogratz also noted that BTC, despite a sell-off in May, is still up 65% year-to-date which makes it one of the best performing assets since the start of 2023.

Rate cuts will be a positive for Bitcoin

Novogratz also expects Bitcoin to benefit once the U.S. Federal Reserve starts to cut interest rates that he sees likely in the final quarter of this year.

To that end, the Galaxy Digital CEO said he would definitely pick BTC over a 5.0% guaranteed return on Treasury Bills if he had to invest $10,000 right now.

The U.S. economy will slow . . . If we see a real slow down in the second half of the year, the Fed will be cutting rates by October and crypto will be off to the races.

Further ahead, the total supply of Bitcoin is set to cut in half next year that’s historically been a tailwind for price appreciation.

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