Bitcoin is unlikely to dip below $50,000 again and its latest rally is an adoption story, crypto bull Mike Novogratz says
- The recent bitcoin rally is fueled by greater adoption of the token and it's unlikely to go back below $50,000.
- That's according to billionaire crypto bull and Galaxy Digital CEO Mike Novogratz.
The recent bitcoin rally is being fueled by widespread investor adoption of the crypto rather than macroeconomic factors, and the token is unlikely to dip below $50,000 again, says crypto billionaire Mike Novogratz.
"I don't think we go back below $50,000, $55,000. I think that's the new floor, unless something dramatic happens," the crypto bull said on CNBC's "Squawk Box" on Wednesday.
Novogratz noted that the two typical drivers that fuel bitcoin higher are investor appetite and macro forces like Federal Reserve policy and government debts and deficits.
This latest rally, as he emphasized, is all about traders' adoption that's been fueled by regulators giving the green light to the first US spot bitcoin ETFs in January, which has driven a surge in demand.
"If you think about what's going on in DC, this is a vote, right? The American people have just voted. They like bitcoin and they like digital assets," he said.
"We had a billion dollars of inflows last night into the ETF complex. As long as that is positive, the price is going to keep grinding higher. Once that becomes negative, you'll see the first real correction," he added.
Meanwhile, Bitcoin leaped 2.2% in Wednesday trades, soaring to $73,679 thanks to the persistent demand from spot bitcoin ETFs. On Tuesday, BlackRock's iBIT bitcoin fund saw a staggering $849 million worth of inflows.
Yet the Galaxy Digital CEO also highlighted that although the ETFs broader investors' access to bitcoin, they only scratch the surface of the total market cap.
He estimated bitcoin's total market cap to be about $1.5 trillion versus the nearly dozen ETFs holdings of about $40 billion.
"[S]o it's still a very small percentage of bitcoin's price," Novogratz said.
The billionaire also said that politicians shouldn't shut the doors for bitcoin-related initiatives or interests.
"Washington needs to get off the stick, get off the couch and start doing something ,right? This is going to be an issue for Democrats in this election who had been perceived to be standing in the way of Bitcoin."