Galaxy Digital founder and billionaire cryptocurrency investor Michael Novogratz said recently that as the U.S. political environment becomes increasingly positive towards digital assets, it may push Bitcoin towards a record high of $100,000 or even higher by the end of this year.
He said in an interview, "If the price of Bitcoin rises to $73,000 in the next week or so, it will rise to $100,000 or more by the end of this year." After rising to an all-time high of $73,798 in March this year, Bitcoin has not yet returned to this level.
In recent days, the market's expectations for the Fed's interest rate cuts this year have increased, and the price of Bitcoin has risen and exceeded $71,000, achieving a "five-day winning streak". As the world's largest digital asset, Bitcoin is on its way to its longest winning streak in three months. Analysts believe that the easing of the financial environment may help speculative assets such as cryptocurrencies.
Tom Couture, vice president of digital asset strategy at U.S. investment institution Fundstrat Global Advisors, said in a report that cryptocurrency assets have responded positively to the prospect of falling interest rates.
As for the future surge, Novogratz pointed out that the two major catalysts he has been waiting for are about to arrive: a "friendly" political environment and a rate cut by the Federal Reserve.
He further explained that in the past few weeks, the government's attitude towards cryptocurrencies has become more positive: the U.S. Securities and Exchange Commission (SEC) has taken a step towards approving a spot Ethereum ETF; the Wisconsin Pension Fund purchased $163 million worth of Bitcoin-related assets in the first quarter, indicating that even institutions and pension funds are accepting digital assets.
Additionally, data shows that Trump currently leads incumbent President Biden by a narrow margin in the polls, and Trump has long been a supporter of cryptocurrency.
But Novogratz believes that in the long run, it doesn’t matter who becomes president because pro-cryptocurrency rhetoric is becoming increasingly bipartisan.
Additionally, on the legislative front, the likelihood of the 21st Century Financial Innovation and Technology Act becoming law in 2025 is rising. The bill would establish a new regulatory framework for cryptocurrencies in the United States, something the industry has long called for.
"This will allow big banks to engage in the sale and trading of cryptocurrencies, thereby attracting a new wave of institutional money," he said.
