Cloud Hosting

Bitcoin bull and Galaxy Digital CEO, Mike Novogratz, says bitcoin is for everyone. He argues that those committing 2% to 3% of their net worth to this digital asset today will see substantial gains in five years. Novogratz adds that while bitcoin remains a volatile asset he does not expect its price to drop to levels seen in March when it crashed to under $4,000. Instead, he asserts that bitcoin prices shouldnt fall below $12,000 in this current cycle.

According to a report, the bitcoin bull says unlike 2017, current evidence supporting bitcoin prices is better than its ever been. Novogratz repeats the now widely accepted view that institutional investors are driving the current bull market. Novogratz explains:

This rally is being driven by institutions slowly getting into this space, high net-worth individuals, hedge funds, real institutions. Bitcoins become a macro-asset.

The participation by these players along with increased regulation should smooth out some of bitcoins volatility.

Novogratz also comments on U.S. President-Elect Joe Bidens pick for the Treasury Secretary post, former Federal Reserve Chairperson, Janet Yellen. The former Federal Reserve Chair has previously said she is not a fan of bitcoin and that it is a highly speculative asset.

Although Yellens possible return as the U.S. Treasury boss has rattled some within the crypto space Novogratz is not overly worried because a lot has changed since she made the comments. Instead, the CEO thinks Yellens general dovishness should be good for hard assets like gold and bitcoin.

Novogratz concludes by sharing his thoughts on altcoins saying:

You can lose 60% of your money in a day. And so fair warning, if youre going to play in those things, do it with small size and know what youre doing.

Meanwhile, not everyone agrees with the narrative that the entry of institutional investors into the crypto market is the only significant factor behind the bitcoin bull-run. Marcus Swanepoel, the CEO Luno exchange says retail volumes have increased in the past few months.

In a Twitter post, Swanepoel writes:

This bitcoin bull run is not just from institutions. Our (retail) volumes in South Africa, Malaysia, Nigeria, and Indonesia all trebled over last month and (are) at all-time highs. Emerging market consumers are voting with their money and theyre ready for a better financial system.

Meanwhile, at the time of writing, bitcoin had dropped from over $19,350 reported on many exchanges to just above the $17,000 handle.

What are your thoughts on Novogratzs belief that BTC will not go below $12,000 in this cycle? Share your views in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

See the original post:
Mike Novogratz: Everyone Should Put 2% to 3% of Their Net Worth in Bitcoin | News - Bitcoin News