Galaxy Digital CEO Michael Novogratz believes The current bear market is just a difficult period and the global economy and the pace of cryptocurrency adoption will push Bitcoin up to $500,000 within five years.
Novogratz made the comment during an interview with Kitco at the Bloomberg Crypto Summit.
“This is a story about two things – adoption and the global economy. And while it’s a bump in the road to adoption. It’s certainly not a reversal.”
Novogratz argued that the current state of the market is disturbing institutional players. They oscillate and do not “dive with two legs”. However, institutions that didn’t get involved will soon see the opportunity and jump in, which should lead to a new burst of storytelling.
During an interview with CNBC in June, Novogratz argued that bitcoin could be close to bottoming and could see another upside bounce soon. At the time, Bitcoin was trading at around $22,480. At the time of this writing, Bitcoin is worth approximately $23,616.
High inflation will save the cryptocurrency
Novogratz also mentioned how the current state of global finance is behaving like a push up for the cryptocurrency.
He argued that the world economy was deteriorating day by day and, in terms of politics, had already passed the point of sustainability. Novogratz said that cryptocurrency is still a good investment choice despite the falling prices and will become the only choice for people in the future.
“Looking at the global landscape, I don’t see how fiscal prudence can be put in a box. We have a debt to GDP ratio of over 140%. [That] almost never ends without debt restructuring or hyperinflation. This year we had inflation of 9%. People get very angry when you have high inflation.”
Others Who Expect a BTC Surge
In June 2022, Bloomberg News senior commodities strategist Mike McGlone recently stated that he expects BTC to hit $100,000 by 2025.
Like Novogratz, he also believes that an increase in the adoption rate, combined with a reduction in the supply of BTC, will inevitably cause a price spike. He highlighted the significant rise in adoptions, saying:
“Based on the total market capitalization of all stocks on the planet […] crypto is about 1% of that. A few years ago they were 0.01%. A few years before that, there were even fewer of them.”
Analyzing the current market at the time, McGlone stated that bitcoin could continue to fall for some more time. However, in two years it will increase to $100,000 once it hits the bottom.
Moreover, a recent user adoption report showed that the actual surge in Bitcoin adoption is yet to come. The report reviewed the development of all disruptive technologies and concluded that the current pace is only the initial steps of implementation. Judging by the numbers, Bitcoin will enter a phase of exponential growth in 2030 and exceed 10% of adoption.
Credit : cryptoslate.com