• Michael Novogratz, CEO of Galaxy Digital, is still bullish on Bitcoin despite its 8.0% decline in May.
• He attributed the weakness to a lack of institutional investors and highlighted two recent developments that he dubbed “meaningfully positive” for BTC.
• Novogratz also expects Bitcoin to benefit from potential rate cuts by the U.S. Federal Reserve later this year and the halving of its total supply in 2023.
Michael Novogratz Bullish on Bitcoin Despite Weakness
Bitcoin ended May down 8.0% – its worth month since November. Galaxy Digital CEO Michael Novogratz is still bullish on BTC despite the recent dip.
What Led to Bitcoin’s Decline?
Novogratz attributed the recent weakness in BTC to a lack of participation from large-scale buyers or institutional investors.
Two Recent Developments Positive for Bitcoin
Novogratz highlighted two recent developments that he dubbed “meaningfully positive” for BTC: WeChat enabled bitcoin and crypto trading; and Hong Kong officially allowing crypto trading for retail customers through regulated exchanges.
Rate Cuts Will Benefit Bitcoin
Novogratz expects Bitcoin to benefit once the U.S. Federal Reserve starts to cut interest rates, which he believes is likely in the final quarter of this year..
Halving of Total Supply In 2023
Further ahead, the total supply of Bitcoin is set to cut in half next year that’s historically been a tailwind for price appreciation..