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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.
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.
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.