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Mike Novogratz Expects Bitcoin to Stabilize Now, Resuming Rally in Q4

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Wed, 08/25/2021 - 13:32
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Yuri Molchan
Prominent expert in asset management and head of Galaxy Digital believes that Bitcoin is going to stabilize for now and begin consolidating, then resume rising in Q4
Mike Novogratz Expects Bitcoin to Stabilize Now, Resuming Rally in Q4
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In a recent appearance on CNBC's Squawk Box show, founder and CEO of Galaxy Digital crypto bank Mike Novogratz summarized the reasons that have led to the current increase in the Bitcoin and Ethereum prices.

He believes crypto is likely to resume rallying in the fourth quarter of 2021.

Factors that have pushed crypto prices up, as per Novogratz

The former Goldman Sachs asset manager, who first bought Bitcoin in 2013-2014 and grabbed 500,000 ETH from Vitalik Buterin in 2015 when it was still $0.99, believes that the resumption of the crypto rally is down to Walmart and Amazon getting interested in the crypto space as of late.

He reminded the Squawk Box co-host that, recently, these two retail heavyweights have posted job vacancies seeking crypto engineers and chiefs of crypto asset departments.

Novogratz read this as a clear sign that Amazon and Walmart were saying that they firmly intend to be part of this new trend.

Besides, on Tuesday, Visa global payments card giant bought a CryptoPunk NFT (non-fungible token), paying $150,000 in Ethereum, as if also shouting that digital assets are going to be a large part of their business.

Novogratz added that he had spoken to the "guy who runs crypto at Visa" and confirmed Novogratz's interpretation of this move.

A lot of the financial structure is going to be rebuilt on a blockchain basis, the Galaxy Digital CEO opined.

Community made Washington see an industry in crypto

Novogratz also mentioned the $3.5 trillion infrastructure bill, part of which was expected to be raised by taxing crypto. A certain amendment was proposed by several U.S. senators that would make things very hard for the crypto industry.

However, over the weekend of Aug. 6-7, the crypto community started roaring—calling, emailing and writing to senators and congressmen—explaining that this amendment would be stifling fintech innovation in the U.S., and it was not passed.

Mike Novogratz said that, for just one weekend, Washington saw crypto as an actual industry.

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Crypto and S&P 500 may have a good Q4

As for what may happen to Bitcoin and Ethereum from here on out, Novo opined that crypto cannot move up forever and will probably stabilize here and begin consolidating. But in the fourth quarter, Bitcoin and other crypto assets are likely to resume their rally, Novogratz assumed.

He believes that the S&P 500 index is going to have a good Q4 and, perhaps, so is crypto.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.