Monday , January 25 2021

Crypto Guru Mike Novogratz warns Bitcoin about the fate of the shares – for now



Despite its growing reputation as an uncorrelated hedge, Bitcoin lawyer and Galaxy Digital CEO Mike Novogratz says Bitcoin remains tied to macroeconomic movements.

The CEO, who exactly predicted that Bitcoin will exceed $ 20,000 by the end of 2020, speaks with CNBC Squawkbox about the correlation of Bitcoin with the stock market.

When asked what he anticipates will happen if the current speculative bubble explodes, Novogratz says he fully expects Bitcoin to sink with the rest of the stock market.

“If the speculative bubble explodes, Bitcoin will fall for a while. There is too much correlation between people with risky assets, no. If you made a lot of money here and you lose a lot of money here, at some point you will make some profits where you made money. So if S&P were to drop 20% in the next three days, Bitcoin would be smaller, not bigger. “

Despite this correlation, Novogratz believes that Bitcoin will mature into an asset that is less affected by significant declines in the stock market, as a growing number of millennials and z’ers view BTC as a hedge against economic uncertainty. .

“There is an adoption cycle with institutions that want to buy this, because it is very difficult to see a way out for central banks and governments. It is very difficult to see a way out for this huge deficit that we continue to grow and grow at an accelerated pace.

That’s why millennials and z-types intuitively buy Bitcoin because they know they’re a bit cheated. Baby boomers have eaten all their future lunches in many ways, building these huge deficits, so I think Bitcoin will remain correlated with short-term risk assets, but this correlation is breaking down over time and will continue to go [down] as more people enter this community. “

Novogratz highlights the viral nature of the Bitcoin story, trying to prepare viewers for what he sees as an imminent attack of Bitcoin institutional interest.

“The viral nature of the number of people entering bitcoin cannot be underestimated. It is shocking to me how many institutions are now lining up to try to introduce Bitcoin into their portfolios. “

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Disclaimer: The views expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.




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