It has been revealed the fact that the billionaire Mike Novogratz has some pretty optimistic predcitions about the price of both Bitcoin and Ethereum. Here’s what he has to say about the digital assets below.
BTC and ETH price predictions
Galaxy Digital’s CEO, Mike Novogratz, recently gave an interview to CNBC, where he expressed his opinion that the top two cryptocurrencies by market cap, Bitcoin (BTC) and Ethereum (ETH), could exceed their previous all-time highs if institutions started investing even small amounts of capital in digital assets.
According to Novogratz, the US government’s increasing inability to maintain a balanced budget and avoid deficits is positive for the crypto market.
As a result of the anticipated higher inflation and lower interest rates, Novogratz believes that if institutions decide to allocate even small portions of their portfolio to crypto, BTC and ETH would experience a supply crunch and surge dramatically.
“I’ve been down to D.C. a lot in the last four months. If I had any faith that we would get a Simpson Bowles amendment to balance the budget or have any fiscal prudence, I wouldn’t be as bullish on Bitcoin. But I just don’t, and we’re going into an election year.
So you’ll have a Fed cutting with a 5% budget deficit and a projected 5% budget deficit next year and the following year. If people start shifting 1% of their portfolio, institutions, 1%, not 10, just 1, there isn’t a lot of supply in Bitcoin or Ethereum.”
Novogratz, a well-known Ethereum investor, believes that Bitcoin is currently experiencing an unprecedented supply and demand dynamic which could easily propel the cryptocurrency well above its previous all-time high.
He explains that some of their customers are buying large amounts of Bitcoin every day, which could potentially deplete all the available supply.
This means that the global market has not experienced a situation where there is such a limited supply and high demand for a particular asset.
Novogratz expects Bitcoin to reach $69,000, which was its previous all-time high, and even surpass it in the coming year.
BTC is worth $42,411 at the time of writing, while ETH is trading for $2,194.
