Although Bitcoin, among most financial assets, has lost a significant chunk of its value in the past month, Michael Novogratz remains positive. The CEO of Galaxy Digital Holdings recently predicted that 2020 will be the year of Bitcoin because of the macroeconomic backdrop.
Novogratz: 2020 – The Year Of Bitcoin
It’s safe to say that the past several weeks have been brutal in most financial markets, including the cryptocurrency scene. Some popular indexes plunged so hard that they had to halt trading on several occasions to prevent further price massacres.
The decentralized nature of the cryptocurrency market, however, doesn’t allow stopping trading sessions. Therefore, price slumps of up to 40% in a day are entirely possible.
Since the middle of March, when BTC touched $3,600 in one of its worst 24h trading periods, the primary cryptocurrency has recovered to approximately $6,000. Those sorts of fervent swings are somewhat expected in the cryptocurrency market.
Galaxy Digital’s Novogratz also confirmed the high levels of volatility and warned that the community should expect more of the same. However, he believes that Bitcoin will have a significant role in 2020 due to its general economic features:
“$btc will continue to be volatile over the next few months, but the macro backdrop is WHY it was created. This will be and needs to be BTC’s year.”- he Tweeted.
Novogratz is not the only one thinking that Bitcoin will perform well in a recession. Venture capitalist investor, Tim Draper, recently said that “the benefits of Bitcoin and crypto over current systems will become apparent during this crisis.”
Rise In Confidence For Bitcoin?
The former Wall Street hedge fund manager seemed much more positive now, compared to his March 13th tweet regarding Bitcoin. When the price touched $3,600, the former Goldman Sachs executive said that BTC “was always a confidence game. All crypto is. And it appears global confidence in just about anything has evaporated.”
The former Wall Street hedge fund manager, however, also indicated that the only reason BTC dropped is that investors took off their leverage to book profits during this market crisis.
With his recent optimistic prediction regarding Bitcoin’s future, Novogratz joins the likes of Gemini CEO Tyler Winklevoss and popular whistleblower Edward Snowden. The former noted that BTC will emerge stronger than ever, while the latter saw no real reason behind the 40% drop and even contemplated purchasing more.