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In a Wednesday CNBC interview, Michael Novogratz, CEO of Galaxy Digital, predicted that the price of Bitcoin could potentially plunge to $42,000 in response to market dynamics or regulatory upheavals.
"Could be some regulatory, you know, kerfuffle. Could just be the market got a little long, and you get people scared," he said.
Yet, even as he laid out these numbers, his bullish sentiment on the crypto market's future was palpable.
Institutional money is coming
Novogratz delved into the transformative impact of institutional adoption on the cryptocurrency landscape, particularly emphasizing the burgeoning ETF market. "Right? $42 trillion worth of wealth are managed by brokers. Baby boomers own most of the wealth in America, and getting their first easy access to Bitcoin... You're seeing it through ETFs, massive growth in a very short period of time in this whole ETF complex," he stated.
This influx of institutional interest, according to Novogratz, not only validates the cryptocurrency space but also heralds a period of consolidation and eventual upswing.
He added, "I don't think that's going to stop... I still see Bitcoin ending the year a lot higher."
Regulatory challenges
Touching on the regulatory landscape, Novogratz shed light on the growing pains and eventual maturation of the crypto market as it seeks wider acceptance.
The demand from clients for Bitcoin and other digital assets is pushing institutions to pivot, albeit cautiously. "There's an inevitability to it. Why? Because their customer is calling and pitching at them, saying, 'We want to buy Bitcoin with you,'" he explained, capturing the pressure financial advisers and platforms are under to incorporate crypto into their offerings.
A bullish view
Looking forward, Novogratz sees a bright future for Bitcoin. The ongoing bull run will be fueled by both the macroeconomic environment and the ongoing adoption cycle, according to the crypto bull.
He agrees with Tom Lee's optimistic view that the Bitcoin price could reach new heights, potentially testing its previous peak of $69,000 in the near term.
This bullish outlook is based on a combination of new buyer interest and macroeconomic factors, including speculation about the Federal Reserve's monetary policy.
Denys Serhiichuk
Tomiwabold Olajide
