Leading crypto has made a strong impression with its performance in the last week. Billionaire Mike Novogratz said that Bitcoin (BTC) can still reach $ 500 thousand.
“Bitcoin will be $500,000 in five years!”
Despite its growth since its inception, the cryptocurrency industry still has a lot of opponents. But it is not without bullish supporters. One of them is Mike Novogratz, CEO of crypto investment firm Galaxy Digital. Speaking at the Bloomberg Crypto Summit, Novogratz said that Bitcoin (BTC) will undoubtedly reach $500,000 in the next five years due to its unique characteristics and adoption rate, as eMoney Financial reported on July 19.
According to Mike Novogratz, among the special qualities of Bitcoin is that it is “specially crafted to be an anti-inflationary store of value.” Besides that, he cites the fact that it “transfers easily and is therefore better than gold in many ways.” Also, the billionaire says that the debt-driven global financial system is fueling excessive consumer price inflation. That’s why he states that Bitcoin could work as a unique way to store wealth in the long run.
“There is an unexpected amount of leverage!”
Bloomberg’s Misyrlena Egkolfopoulou and Sonali Basak spoke to Novogratz about the recent turmoil in the crypto market on July 19. The famous billionaire says it’s a ‘full-fledged credit crisis’. He also admits that he was ‘very wrong’ about the size of the leverage in the system. Novogratz explains:
What I didn’t think people expected was the magnitude of the catastrophic losses that would appear on the balance sheets of professional institutions. With the complete liquidation, it turned into a full-fledged credit crisis that greatly damaged confidence in space.
Mike Novogratz also speaks the lesson of Terraform Labs’ collapse. He admits that industry and individual investors “really have very, very little concept of risk management.” cryptocoin.comAs you follow, Novogratz was among the big supporters of Terraform Labs.
Mike Novogratz blames regulators
Novogratz also accuses regulators of not doing their best to protect individual investors. He also accuses institutions of allowing enormous amounts of leverage. He notes, for example, that a cardiologist lost $1 million in the Celsius collapse.
Billionaire investor @novogratz says that his heart doctor lost $1 million in crypto when discussing disclosures among handling retail deposits with @sonalibasak #BloombergCrypto pic.twitter.com/4sGIzi7rv6
— Bloomberg Live (@BloombergLive) July 19, 2022
However, the famous billionaire voices the opinion that “the worst is over” for the crypto market. He says the Bitcoin argument is still strong, especially as central banks around the world are battling inflation.
In June, Novogratz noted that the Federal Reserve needs to step back before the crypto market can recover. He stated that for this, the Fed should ‘take his foot off the brake’. He also voiced his predictions that the majority of hedge funds investing in cryptocurrencies will stick with it.
