Bitcoin Continues on An Uptrend; Mike Novogratz Explains Why
Since December 2019, Bitcoin price is still surging from $6.4k to $10550 this week, as per Tradingview data. The coin experienced over 60% gains and performed better than other assets apart from ETH, XRP, and Tesla.
Following the Bitcoin’s incline, Mike Novogratz, the CEO of Galaxy Digital, explained the currency’s upsurge to CNBC’s “Closing Bell ” panel. Novogratz says that liquidy accelerates the crypto’s uptrend. He said that low-interest rates set up by Central Banks and people pumping in money increased demand for the stock and other assets such as Bitcoin.
Three Reasons on Why Bitcoin is Upsurging
On the 30th of January 2020, Novogratz talked to Bloomberg about three reasons why Bitcoin will continue to rise. The first reason is due to the devaluation of fiat money. Novogratz said that low-interest rates globally lead to abundant capital market liquidity, and the devaluation of the fiat money may greatly benefit BTC and gold. It means that the inflation caused by negligent central banks should prove the value of unavailable assets, including Bitcoin.
The second reason is that BTC is evolving into digital gold. Novogratz says the maturation of Bitcoin into a digital store of value investment could lead to a rise in prices. He also pointed out that the asset’s performance amid a short Iran-US war fear and the current coronavirus pandemic may attract investors with time. The third reason is the broadening of cryptocurrency infrastructural levels, which may enhance BTC.