Leading Bitcoin defender Mike Novogratz reiterates his expectations for BTC
Famous Bitcoin defender Mike Novogratz once again suggested a big price target for the main cryptocurrency. Mike Novogratz’s forecast for Bitcoin by the end of 2020 is $ 20,000, the same amount (or almost) of BTC’s highest ever record during the 2017 rally.
However, he expects halving to be a ‘buy the rumor, sell the news’ for a few days, adding: “I think we are starting a bull market in four or five years”.
Novogratz’s price forecast came after the main cryptocurrency jumped above $ 10,000, rebounding to mid-February levels.
Exciting day for $ btc. I want to point out that we aren’t even at the years highs. This rally is just starting. Don’t miss the bus.
– Michael Novogratz (@novogratz) May 7, 2020
“Exciting day for btc. I want to emphasize that we haven’t even reached the annual highs. This rally is just beginning. Don’t miss the bus. ”
“Something really significant is happening,” Novogratz also noted when pointing out that new Bitcoin buyers are entering the market. Yesterday news came from macro investor Paul Tudor Jones buying BTC and calling the asset a hedge against inflation.
The biggest economic collapse in history
The former hedge fund manager recently joined Jeremy Allaire, Circle’s co-founder and CEO in his first episode of The Money Movement podcast, where he also talked about how before the coronavirus dominated the economy with a total employment rate, the US was running a fiscal deficit of 5%.
But now that we have reached the “biggest single economic collapse in history”, the Federal Reserve (Fed) has to throw a lot of sand into this fire, which means: “we will run from 20 to 25%”, which is unprecedented.
The US national debt has already reached $ 25 trillion, adding $ 35 billion in new dollars to it every day since April 9.
But still, disposable income is higher than last year, due to the Central Bank printing money like crazy.
“We still have a lot of income because the government is donating, but that ends in July and suddenly, purchasing power decreases and we will have deflation,” explained Novogratz.
So much opportunity for astablecoins
This year, in addition to Bitcoin, fiat-indexed stablecoins have also seen considerable growth as a result of a USD shortage globally.
According to Novogratz, Tether has been “explosive” because it is standing the test of time. Tether is an Asian phenomenon used by the Chinese who were unwilling to pay taxes and move money.
This behavior accelerates during uncertainty and chaos, and this is an environment that we are in today.
In addition, fear of germs on paper money due to coronavirus will change the trend towards digitization.
Speaking about the advantage of stablecoins, Kyle Samani, co-founder of Multichain Capital, said that transferring stablecoin on the blockchain is just a “magical experience”, which is instant and at low rates, which makes it a better experience than the fiduciary currency transfer.
Source: BTC EG