The third Bitcoin halving is fast approaching and investors are rushing to hop on the train ahead of this event. Galaxy Digital Founder and CEO, Michael Novogratz confirms this in an interview with CNBC. According to the Bitcoin bull and billionaire investor, the company is experiencing an influx of investors. Speaking during the interview, he said:
“We’re seeing lots of new investors in that space, hedge funds that are buying it not just as individual managers would buy it in their fund. I think you’ll see some announcements soon of that or you know investor letters yeah and so all positive stuff in terms of flow into that space is that’s where the bulk of my risk is, it’s been a fun environment in the Bitcoin space after a long desert we now really have real activity”
The halving will cut Bitcoin’s inflation by half as opposed to fiat money which the Fed is printing and thus increasing its inflation. The Fed has printed trillions of dollars this year to support citizens during the lockdown due to the COVID-19 pandemic.
Although with good intentions, experts fear that this may severely deplete the value of the U.S Dollar in the near future and make it insecure as a store of value. This, he said is what is driving both retail and institutional investors to the Bitcoin space.
“I love Bitcoin, next Tuesday we have a Bitcoin having where the inflation rate gets cut in half and so you talk about inflation and fiat currencies where the Fed is printing money like it’s a you know money printing machine and in the Bitcoin space you know this money supply gets cut 50% and so big deal there,” he added.
Bitcoin seems to be living up to investors’ expectations as it has maintained a steady price growth in the last few days. The asset has maintained its position close to $9,000 and currently trades well above the critical price level.
The crypto community expects a fair price surge following the event as evident by recent opinion polls. With several investors flocking to the crypto space, this may just become a reality and serve as a stepping stone to a bigger bull run in the long run.