According to Galaxy Digital CEO Michael Novogratz in an interview with Bloomberg TV, Bitcoin could potentially exceed $100,000 by the end of the year as political barriers diminish.
Key Price Milestones and Predictions
“If we take out $73,000 in the next week or so, we’re gonna end the year at $100,000. Somewhere around there or even higher,” the crypto enthusiast stated on Tuesday. This suggests a 40% gain from Wednesday’s price of $71,500.
Catalysts for Bitcoin’s Rally
Novogratz has been anticipating two primary catalysts for a fresh bitcoin rally in recent weeks. He mentioned the importance of more regulatory clarity and the Federal Reserve’s actions. While he initially thought regulatory clarity was unlikely, recent developments have provided enough certainty for investors to recognize its inevitability.
Government’s Changing Attitude
There are clear indications that the government is altering its stance towards the crypto industry. Last month, the Securities and Exchange Commission approved spot ether exchange-traded funds without opposition. This unexpected approval surprised markets and indicated a shift in regulatory attitudes.
Institutional Adoption
Wisconsin’s purchase of approximately $163 million worth of bitcoin ETF shares last quarter illustrates the growing acceptance of digital assets by institutions and pension funds, as noted by Novogratz.
Political Shifts in Capitol Hill
A significant positive development is occurring on Capitol Hill, where Democrats are becoming less inclined to view crypto as a political issue. Although not all party members have been anti-crypto, a few key legislators previously led the hard stance against such currencies. This attitude is changing with increased lobbying efforts and the rising role of crypto in election funding.
Impact of Lobbying and Election Funding
“The scale has gotten bigger. That’s why the Democrats woke up. There’s been about $150 million on its way to $250 million in these crypto Super PACs,” Novogratz explained.
Election Implications and Bipartisan Support
Regarding the upcoming election, Novogratz mentioned that former president Donald Trump might seem more favorable for the crypto industry due to his early support. However, he argued that the long-term impact will be less dependent on the president, as pro-crypto rhetoric is gaining bipartisan traction.
Legislative Prospects and Future Growth
As political obstacles are removed, Novogratz anticipates new legislation that could further boost the crypto market. He highlighted the potential impact of the Financial Innovation and Technology for the 21st Century Act (FIT21 bill). If approved, this bill would enable major banks to engage in crypto sales and trading, attracting substantial institutional investment.
Comprehensive Regulatory Framework
The proposed FIT21 bill aims to establish a comprehensive regulatory framework for the US digital asset market, potentially paving the way for significant growth and stability in the crypto industry.
