Michael Novogratz, founder of Galaxy Digital and billionaire cryptocurrency investor, recently stated that as the US political environment becomes more positive towards digital assets, it may push Bitcoin towards a record high of $100000 or even higher by the end of this year.
He said in an interview, "If the price of Bitcoin rises to $73000 in the next week or so, it will rise to $100000 or higher by the end of this year." After reaching a historical high of $73798 in March this year, Bitcoin has not yet returned to this level.
In recent days, the market's expectations for the Federal Reserve's interest rate cut this year have increased, and the price of Bitcoin has risen and exceeded $71000, achieving a "five consecutive increases". As the world's largest digital asset, Bitcoin has set a record for its longest consecutive rise in three months. Analysts believe that a relaxed financial environment may help speculative assets like cryptocurrencies.
Tom Couture, Vice President of Digital Asset Strategy at Fundstrat Global Advisors, a US investment firm, stated in a report that cryptocurrency assets have responded positively to the prospect of declining interest rates.
For the future surge, Novogratz pointed out that the two catalysts he has been waiting for are about to arrive: a "friendly" political environment and the Federal Reserve's interest rate cut.
He further explained that in the past few weeks, the government's attitude towards cryptocurrencies has become more positive: the US Securities and Exchange Commission (SEC) has taken a step towards approving spot Ethereum ETFs; Wisconsin pension funds purchased Bitcoin related assets worth $163 million in the first quarter, indicating that even institutions and pension funds are accepting digital assets.
In addition, data shows that Trump currently leads incumbent President Biden by a narrow margin in opinion polls, and Trump has long been a supporter of cryptocurrencies.
But Novogratz believes that in the long run, who becomes the president is not that important, as pro cryptocurrency rhetoric is becoming increasingly bipartisan.
In addition, in terms of legislation, the possibility of the 21st Century Financial Innovation and Technology Act becoming law in 2025 is increasing. The bill will establish a new regulatory framework for US cryptocurrencies, which the industry has long been calling for.
"This will allow large banks to engage in the sales and trading of cryptocurrencies, thereby attracting a new round of institutional funding," he said.