Best Reason to Buy Bitcoin (BTC) and Gold (XAU) Now Revealed by Mike Novogratz

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Tue, 03/24/2020 - 14:25
Alex Dovbnya
Bitcoin (BTC) could follow gold’s suit by recording huge gains during the upcoming recession, according to Mike Novogratz
Cover image via www.bloomberg.com
Contents

Mike Novogratz, the CEO of crypto bank Galaxy Digital, believes that Bitcoin (BTC) could follow gold and witness a major price rally. Despite its recent gains, BTC is yet to recover from the May 12 flash-crash.   

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Everything is rallying  

Gold has just witnessed a stunning V-shaped recovery after the U.S. Federal Reserve made an aggressive effort to shore up the economy with open-ended QE. On March 24, the lustrous metal once again surged above its make-it-or-break-it level of $1,600 per ounce. 

The Fed’s unprecedented announcement didn’t go unnoticed by Bitcoin investors -- the cryptocurrency surged by almost 14 percent on the news. However, unlike gold, BTC is still down six percent this year.

With the Dow surging by more than 1,100 basis points, this could be another strong day for crypto.

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Bitcoin’s time is yet to come 

It is worth noting that Novogratz believes that gold can go much higher, and BTC could follow suit. Both of these assets are driven by the same thesis -- hedging against the economic mayhem. 

Both Bitcoin and gold hit the rocks during the coronavirus-driven sell-off. However, as explained by BlockTowerCapital Ari Paul, they could resume their bullish trend once this liquidity crisis is over. This is exactly what happened during the 2008 GFC.

After all, according to Novogratz, central banks going on a money-printing spree is the single most bullish thing for Bitcoin. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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