Galaxy Digital CEO Mike Novogratz predicts bitcoin could hit 0,000 by year-end, citing a positive U.S. political environment for digital assets. He highlighted growing optimism for cryptocurrencies and progress on SEC approval of spot ethereum ETFs. However, the industry recently faced a setback when President Joe Biden vetoed a resolution to overturn the controversial crypto […]
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Bloomberg’s Mike McGlone Reveals Why A $150,000 Bitcoin Price Target Is Far Off
Mike McGlone, Senior commodity strategist at Bloomberg Intelligence, has made a rather pessimistic prediction for Bitcoin, emphasizing that the cryptocurrency’s potential rise to 0,00 was a long shot. The strategist has revealed factors that could make Bitcoin’s projected surge to 0,000 difficult, highlighting both macroeconomic trends and Bitcoin’s performance in 2024.
Bitcoin Surge To 0,000 Unlikely
In a recent interview with Scott Melker, the host of “The Wolf Of All Streets,” podcast, McGlone discussed Bitcoin’s price fundamentals and its possible rise to 0,000 in the 2024 bull cycle.
Comparing Bitcoin with the stock market index, the S&P 500, the Bloomberg strategist disclosed that the cryptocurrency was currently showing “divergent weakness,” highlighting that Bitcoin’s performance against the S&P 500 in 2021 was greater compared to 2024.
He also revealed that Bitcoin was displaying a similar weak performance to Gold, emphasizing current market conditions and the risk of short-term deflation in the financial market.
The combination of these factors pushes McGlone to believe that Bitcoin’s short-term projected rise to 0,000 was unlikely.
While the Bloomberg strategist made his foreboding prediction despite Bitcoin’s overperformance at the beginning of the year, McGlone still remains optimistic about the cryptocurrency’s price and fundamental value in the long term.
Co-founder and CEO of CoinRoutes, Dave Weisberger, who was also in the podcast with McGlone, made a more optimistic prediction for Bitcoin. Basing his analysis on historical trends and patterns as far back as 2015, Weisberger forecasted that Bitcoin could rise to 0,000 this cycle.
His forecast is also acknowledged by reformed hedge fund manager, James Lavish, who revealed in the podcast that Spot Bitcoin ETFs could become a potential driver for Bitcoin’s continuous growth. This is attributed to the massive impact Bitcoin ETFs had on the cryptocurrency’s price following its launch on January 11, 2024.
After Spot Bitcoin ETFs were successfully released into the market, the price of Bitcoin skyrocketed to new all-time highs above ,000. At the time of writing, the cryptocurrency is trading at ,778, marking a 0.89% increase over the past seven days, according to CoinMarketCap.
BTC Crash Presents Perfect Opportunity
According to Lavish, if Bitcoin crashes down to the ,000 to ,000 range, it would present a “tremendous opportunity” for investors to acquire substantial value in a long-term asset that will essentially hold its value and continue to appreciate in the future.
The reformed hedge fund manager revealed that Bitcoin’s short-term volatility and market unpredictability could produce long-term capture of value. This suggests that by strategically navigating through the price fluctuations of Bitcoin, investors could potentially capitalize on its volatility to accumulate wealth over time, which in turn could favorably impact the price of the cryptocurrency.
Legendary Boxer Mike Tyson Joins Blockchain Social Network
Boxing legend Mike Tyson has become an ambassador for the blockchain-based social networking app, Ready to Fight. Tyson describes Ready to Fight as a boxing-centric social network that assists boxers and the boxing community with their business needs. RTF Aims to Revolutionize the Boxing Ecosystem Former heavyweight boxing champion Mike Tyson has joined the Web3 […]
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Commodity Analyst Mike McGlone Says Gold Glitters Over Bitcoin as Crypto-to-Metal Ratio Plunges Post-2021
Bloomberg’s commodity market expert Mike McGlone warns of a potential downturn for bitcoin, highlighting its disappointing performance against gold since its peak in 2021. On Sunday, McGlone pointed out that the bitcoin/gold ratio had plummeted by about 40% from its 2021 zenith of 37 times.
McGlone Highlights Bitcoin-to-Gold Ratio, Warns of Potential Downturn vs Gold
Mike McGlone, a Bloomberg commodity analyst, remarks that bitcoin (BTC) has fallen short of gold’s performance since reaching its peak in 2021. On Sunday, McGlone offered his most recent evaluation of certain commodities, incorporating BTC into his analysis. “Pattern Recognition, Gaps and Gold vs. Bitcoin — Since they began trading in 1997, S&P 500 E-mini futures never left a gap on the weekly charts until December — from 4,614 to 4,652 — with back-and-fill implications for risk assets,” the analyst wrote.
McGlone added:
My graphic shows two previous chart holes since 2017 that were subsequently filled. What’s notable is the bitcoin-to-gold ratio, which has a tendency to lead beta, has been trailing since the biggest money pump in history to the 2021 high. The 24-7 traded highly speculative digital asset might be a top leading indicator and equivalent to about 21 ounces of gold on Jan. 2. The ratio is about 40% below the 37x 2021 apex.
McGlone’s insights on this topic aren’t new; he previously discussed the bitcoin-to-gold ratio on Jan. 23, 2024. McGlone suggested that bitcoin’s underperformance compared to gold, despite a high-performing U.S. stock market since 2021, could signal either an opportunity for bitcoin to catch up or indicate a recession. He leans towards the possibility of a recession, highlighting concerns if the Bitcoin/gold ratio continues to decline.
This shift is attributed to the end of zero-interest-rate policies (ZIRP) and the 2021 liquidity surge. With current Federal Reserve’s federal fund rate at 5.58, the scenario has changed, impacting assets like gold and bitcoin that don’t generate earnings or interest, making them less attractive in portfolios. “The crypto exchange-traded fund frenzy might be looked back upon as a bell ringing at the top,” McGlone said at the time.
What do you think about McGlone’s analysis concerning the bitcoin-to-gold ratio? Let us know what you think about this subject in the comments section below.
Dollar’s Reserve Currency Status Is the United States’ Reward for Controlling the Seas – Billionaire Mike Novogratz
According to Mike Novogratz, the United States’ control of the seas enables it to maintain the dollar’s reserve currency status. Novogratz suggested that the U.S. and United Kingdom’s joint strikes on Yemen were necessary because they give residents the “benefit of borrowing endlessly at low rates.”
Impact of Attacks on Commercial Ships Passing Through the Red Sea
Mike Novogratz, the billionaire and CEO of Galaxy Digital, has stated that the U.S. dollar’s reserve currency status is the reward that the United States receives in exchange for controlling the seas. According to the billionaire, maintaining this status costs the U.S. approximately trillion, which is equivalent to around 4% of its GDP.
The country that controls the seas has always been rewarded reserve currency status. It costs the USA approx 4% of GPD to keep that rank. It gives us the benefit of borrowing endlessly at low rates. The actions in the Red Sea are very appropriate in this context.…
— Mike Novogratz (@novogratz) January 12, 2024
Novogratz, a supporter of United States President Joe Biden’s Democratic Party, made these remarks just after the U.S. and the U.K. launched missile strikes targeting regions of Yemen reportedly controlled by the Houthis. The strikes on the Houthi rebels followed a surge in the number of attacks on commercial ships passing through the Red Sea.
The growing attacks have forced some shipping companies to suspend or avoid using the Red Sea altogether. This, in turn, has not only led to an increase in the cost of moving goods by sea but has caused shortages of both raw materials and finished products. For example, Tesla’s mega factory in Germany was recently forced to pause production due to delays in the delivery of parts.
After initially refraining from launching a large-scale response to the attacks on ships, the U.S. and UK responded to the Houthi rebels’ latest provocation by striking 30 targets inside Yemen on Jan. 12. The strikes have, however, reignited fears of a wider regional war.
Cost of Borrowing
Meanwhile, in his Jan. 12 post on X, Novogratz implied that the strikes are necessary if U.S. residents are to continue borrowing at very low rates.
“The country that controls the seas has always been rewarded reserve currency status. It costs the USA approx 4% of GPD to keep that rank. It gives us the benefit of borrowing endlessly at low rates. The actions in the Red Sea are very appropriate in this context,” Novogratz said.
In response to the post, some of Novogratz’s followers on X expressed shock at the billionaire’s endorsement of the bombing. However, one user warned Novogratz of the U.S. dollar’s declining dominance.
“The time for American hegemony will soon be at an end. We have enjoyed three decades of unrivaled premier status in the world and now find ourselves in a multipolar world. I am thankful for Bitcoin,” said the user.
However, another user dismissed Novogratz’s theory and went on to point out that Germany and Japan have lower interest rates yet they are not part of the Yemen bombing campaign.
What are your thoughts on this story? Let us know what you think in the comments section below.
Galaxy Digital CEO Mike Novogratz Expects Spot Bitcoin ETF Approval by January 10, Regulatory Progress After Election
Galaxy Digital CEO Mike Novogratz expects the U.S. Securities and Exchange Commission (SEC) to approve a spot bitcoin exchange-traded fund (ETF) by Jan. 10 next year. Subsequently, he foresees the cryptocurrency reclaiming its all-time high of ,000 and wouldn’t be surprised if it surpasses that price level. The executive also predicts progress in U.S. crypto regulation, expecting changes in leadership at the Treasury Department and the SEC after the upcoming presidential election.
Mike Novogratz’s Crypto Predictions
The CEO of Galaxy Digital, Mike Novogratz, discussed his perspectives on the crypto market and his expectations regarding the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) in an interview with CNBC earlier this week.
Regarding spot bitcoin ETF approvals, the Galaxy Digital boss said:
We are gonna get this ETF before January 10th.
Novogratz added that spot bitcoin ETFs will likely take six to eight weeks after approval to start trading. “After that, it’s just more fuel for a fire,” he stressed, emphasizing: “Crypto stocks are trading like a maniac.”
He preceded to outline the impact of institutions putting 1% of their portfolios into bitcoin or spot bitcoin ETFs. “There isn’t a lot of supply in bitcoin,” he began. “We have customers that are platform customers and [they] buy enough bitcoin every day to take out all the miners,” the executive claimed, adding: “When you think about the supply/demand dynamic, we haven’t really had a situation where you have a global market and you have something of such limited supply and so I think bitcoin can go far higher.” He opined:
I think first stop next year will be the old high, ,000, but it wouldn’t surprise me if it went beyond that.
Commenting on the statements by JPMorgan CEO Jamie Dimon and Senator Elizabeth Warren (D-MA) regarding crypto’s use in terrorist financing, he pointed out that this theory has been debunked. “Yes, some crypto is used for bad things, but not nearly as much as fiat,” Novogratz stated, adding: “Jamie Dimon’s bank has paid billion in fines since he’s been there — billion. Add up all of the bad trades with crypto, it doesn’t add up to billion, so should we ban JPMorgan?”
Regarding crypto legislation, he noted that some bills have been introduced in Congress. “There’s a group of Democrats and Republicans in D.C. that want to get legislation through. There’s two pieces of legislation that would really give us a good framework around both stablecoins and the rest of crypto, and it’s Elizabeth Warren and … the Biden White House that’s stopping that.”
Nonetheless, the Galaxy Digital CEO believes that progress will be made after the U.S. presidential election next year, stating:
I think post this election, we will either have a new administration, either Democrat or Republican. But even if Biden wins, my guess is there’s a new Secretary of Treasury and a new head of the SEC that will finally make some progress.
What do you think about the statements by Galaxy Digital CEO Mike Novogratz? Let us know in the comments section below.
Galaxy Digital CEO Mike Novogratz Says He Was ‘Dead Wrong’ About XRP and Ripple
Galaxy Digital founder and CEO Mike Novogratz has admitted that his past perception of XRP and Ripple was “dead wrong.” Novogratz now sees Ripple as an institution and the XRP army as a “real” organization that cares about the ecosystem and the coin. The billionaire believes that the current U.S. government’s unmatched spending has spurred the economy, but admitted there would be a price to pay down the road.
Ripple’s Unconvincing Business Proposition
The founder and CEO of Galaxy Digital, Mike Novogratz, recently said his perception of XRP and Ripple’s business proposition was “dead wrong.” Novogratz, a billionaire, added that he now sees the so-called XRP army as a real entity that “cares” about the ecosystem and the digital asset.
In his remarks, while appearing on Raoul Pal’s Real Vision show, Novogratz conceded that he was skeptical about XRP’s prospects primarily because Ripple at one point held 60% of the coin. According to the billionaire, when one organization holds that much share of the circulating coins, such a business proposition is not going to work.
However, seeing XRP emerge from several setbacks in the past few years has now seen the Galaxy CEO change his perception of Ripple and its leadership.
“Hats off to Brad Garlinghouse and his team. Ripple is now an institution, the XRP army is real, they care about their ecosystem and their coin,” Novogratz said.
‘No One Is Buying Stuff With BTC’
Meanwhile, when asked about the prospects of bitcoin (BTC) becoming the future currency for everyday purchases, the billionaire said he does not see this happening. Although it started off functioning as a currency for regular payments, according to Novogratz, “no one is buying stuff with bitcoin.”
🧵 Alpha time: @novogratz x @RaoulGMI
Please enjoy 5 takeaways from this convo… 🫡
1/ 🚀 Novo on Ripple’s $XRP triumph against all odds: “I was wrong…” https://t.co/aleePocwRQ pic.twitter.com/T3rXFbbF3L
— Real Vision (@RealVision) December 10, 2023
When asked about the U.S. government’s unprecedented spending which now equates to around 25% of the country’s gross domestic product (GDP), the billionaire believes the unparalleled expenditure helped to spur the economy. He, however, admitted that there would “be a price to pay down the road.”
Concerning the prospects of the ethereum (ETH) spot exchange-traded fund (ETF), Novogratz said he does not see this doing as well as the spot bitcoin ETF unless there is a way of getting the staking rewards.
What are your thoughts on this story? Let us know what you think in the comments section below.
Galaxy Digital CEO Mike Novogratz Foresees Spot Bitcoin ETF Approval in 2023
Galaxy Digital CEO Mike Novogratz expects a spot bitcoin exchange-traded fund (ETF) to be approved in 2023. “It’s going to get approved, we think it happens this year,” the American investor said on Wednesday.
Billionaire and Crypto Investor Mike Novogratz Say There’s Been a ‘Huge Psychological Shift’
After predicting in August, Galaxy Digital CEO Mike Novogratz has accelerated his forecast regarding a spot bitcoin ETF. In mid-August, Novogratz believed the U.S. Securities and Exchange Commission (SEC) would approve one within four to six months. But on Wednesday, while speaking with Andrew Ross Sorkin on CNBC’s “Squawk Box,” he said it’s likely to be approved in 2023.
“It’s going to get approved, we think it happens this year in 2023,” Novogratz remarked. He added that all the indications point to it happening this year. The Galaxy CEO further cited public commentary and filings noting that “people’s comments are much more constructive.”
Galaxy Digital has partnered with Invesco and competes with several major financial firms aiming to launch a spot-settled exchange-traded fund. The company collaborates with Invesco on the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF, known as “BLKC,” and the “SATO” ETF. Novogratz mentioned that the SEC has been in discussions with Galaxy regarding the ETF.
“[The SEC is] no longer talking about how [bitcoin] works or why it’s important. It’s just a recognized macro asset and that’s a huge psychological shift,” Novogratz explained on Wednesday.
He believes that current events indicate approval is imminent. His statements come after Blackrock CEO Larry Fink described the recent surge, following false ETF approval rumors, as a “flight to quality.” Novogratz highlighted Blackrock’s comments, emphasizing that interest from the world’s largest fund manager is a positive indicator. He also stressed, “The public wants this.” Novogratz’s statements follow Fidelity amending its spot bitcoin ETF filing on October 17.
What do you think about Novogratz’s commentary about a spot bitcoin ETF being approved this year? Do you agree with his prediction? Share your thoughts and opinions about this subject in the comments section below.
Crypto Crisis Imminent, Warns Bloomberg’s Mike McGlone, Despite Bitcoin’s Surge To $28,000
On October 2, Mike McGlone, Commodity Strategist at Bloomberg, took to social media X (formerly known as Twitter) to express his concerns about the state of the crypto market.
Despite Bitcoin’s (BTC) recent rise, McGlone highlighted a disturbing trend and raised the possibility of a cryptocurrency recession.
Factors Behind Crypto Market’s Recession Risk
McGlone pointed out the concept of “positive beta vs. negative liquidity” and its implications for the cryptocurrency market.
Bloomberg’s senior Macro Strategist suggested that the weakness observed in the third quarter of 2023 could be either a temporary blip in the recovery or a sign of an impending recession.
According to McGlone, the latter scenario is more likely, given that most risk assets experienced gains in 2023 but have since rolled over into the new quarter.
The strategist also drew attention to the actions of central banks worldwide, noting that many are tightening their monetary policies despite signs of contraction in the United States and Europe.
Additionally, McGlone highlighted the ongoing property crisis in China, which carries deflationary implications. He argued that the Bloomberg Galaxy Crypto Index’s (BGCI) relative underperformance may reflect changing conditions for an asset class that has thrived in a zero-interest-rate environment.
Drawing historical parallels, McGlone mentioned the swoons in Bitcoin’s price preceding Federal Reserve (Fed) pivots, implying that cryptocurrencies could serve as leading indicators for broader market liquidity. McGlone suggested that a revival of liquidity may be necessary to support the crypto market.
Bitcoin Maximalist Identifies Key Factors For Remarkable Market Growth
In addition to McGlone’s forecast, increased regulatory scrutiny and implementing stringent regulations by governments and regulatory bodies can significantly impact the cryptocurrency market.
The United States regulatory bodies have been actively cracking down on the crypto market, causing delays in what was expected to be a bullish run. Lawsuits filed in 2023 and signals of continued regulatory actions by the US Securities and Exchange Commission (SEC) have created uncertainty and restrictive regulations that can dampen investor sentiment and contract the market.
Moreover, economic factors contribute to concerns about a potential recession in the digital asset ecosystem. Cryptocurrencies are interconnected with the broader economic landscape, meaning global recessions, monetary policy changes, inflation, or deflation can affect the cryptocurrency market, potentially leading to a recession.
On the other hand, some view the largest cryptocurrencies as safe havens during significant declines in the world’s largest economies. Bitcoin maximalists, including “The Bitcoin Therapist,” assisted by Artificial Intelligence (AI), have identified key factors necessary for Bitcoin and the overall market to achieve remarkable growth.
These factors include mass adoption, global economic uncertainty, institutional investment, limited supply, increased transaction volume, technological improvements, regulatory clarity, positive market sentiment, halving events, and a global currency crisis.
While progress has been made in factors such as global economic uncertainty, limited supply, increased transaction volume, technological improvements, and halving events, achieving mass adoption, institutional investment, regulatory clarity, positive market sentiment, and a global currency crisis are still pending.
The strategist’s remarks underline the cautious sentiment surrounding cryptocurrencies despite recent positive movements in Bitcoin’s price.
McGlone’s analysis suggests that the cryptocurrency market may face significant headwinds due to changing economic conditions, central bank policies, and potential liquidity challenges.
Featured image from Shutterstock, chart from TradingView.com
SEC Could Approve Spot Bitcoin ETF Within 6 Months, Says Mike Novogratz
Galaxy Digital CEO Mike Novogratz is optimistic that the U.S. Securities and Exchange Commission (SEC) could approve a spot bitcoin exchange-traded fund (ETF) within four to six months. The executive cited his contacts at Blackrock, the world’s largest asset manager, and investment management firm Invesco. Both companies have filed to launch a bitcoin ETF with the SEC.
Novogratz Discusses Spot Bitcoin ETF Approval, Says Ripple Ruling Is ‘a Big Deal’
The CEO of Galaxy Digital Holdings, Mike Novogratz, revealed during his company’s Q2 earnings call on Tuesday that the U.S. Securities and Exchange Commission (SEC) could approve a spot bitcoin exchange-traded fund (ETF) within four to six months.
Commenting on the likelihood of the SEC greenlighting spot bitcoin ETF filings by Blackrock and Invesco, Novogratz shared:
Both our contacts, from the Invesco side and from the Blackrock side, get you to think that this is a question of when, not if, that the outside window is probably six months.
The Galaxy Digital executive added that it may take “four to six months if you had to put a ‘pin the tail on the donkey’ on it that the SEC is going to approve a bitcoin ETF.”
In June, Blackrock filed to launch a spot bitcoin trust ETF. Blackrock CEO Larry Fink explained that the asset manager is seeking to democratize crypto. He believes that crypto will “transcend any one currency.”
Novogratz further said on Tuesday’s earnings call: “It’s significant that Larry Fink who runs the largest asset manager in the world — Blackrock runs trillion — is out, having been orange pilled, talking very positive about bitcoin and the crypto universe, bitcoin as the first global money. That’s a huge change of heart from where he was, five, six years ago, where the institutional world was.” Novogratz opined:
Once we get this ETF … it just makes it very easy for people to make large allocations into the space.
Invesco and Galaxy Digital partnered last September to offer investors exposure to a range of products in the digital asset ecosystem. According to Bloomberg analysts specializing in ETFs, the likelihood of the SEC approving a spot bitcoin ETF in the U.S. has surged to 65%.
Novogratz also explained the significance of the Ripple ruling, stating:
It’s a big deal, mostly because the SEC and Gary Gensler have been saying over and over: ‘Hey, the rules are clear. Just come in and register.’
However, the Galaxy Digital boss pointed out that District Judge Analisa Torres “made it really clear, the rules aren’t clear,” emphasizing that “They’re nothing close to clear.” Novogratz added that in his opinion, the Ripple decision “pressures the Democrats to finally come to the table with the Republicans and try to put forward some legislation to give us clarity.”
On Wednesday, the SEC informed Judge Torres that it intends to file an appeal to her ruling in the SEC v. Ripple case regarding XRP. The securities regulator also seeks a stay of court proceedings.
What do you think about the statements by Galaxy Digital CEO Mike Novogratz? Let us know in the comments section below.