The flagship cryptocurrency kicked-off the month of April with more than 12% gains in two days. The digital asset even briefly tested the $7,300 level yesterday before recoiling just below $7K.
This bullish momentum has sparked optimism about the upside potential of bitcoin in the coming months. In an interview yesterday, widely-known bitcoin permabull Mike Novogratz spoke about 2020 being bitcoin’s year. He even said he might just give up on the asset if its price does not double in six months.
Bitcoin Should Double Within Six Months: Novogratz
The entire world has been engulfed by a pandemic that is rapidly destroying the economy. Many people have lost their jobs amidst the chaos. As this happens, investors are fleeing to the safest assets on the market.
Speaking with CNBC’s Closing Bell yesterday (April 2), the billionaire CEO of Galaxy Digital Mike Novogratz opined that he is noticing a high influx of hedge fund investors and other high-net-worth investors who are betting big on bitcoin for the very first time.
As such, this is slowly unfolding as bitcoin’s year. If it doesn’t rally now, Novogratz is not sure when it will.
Novogratz explained that he is expecting bitcoin to at least revisit its previous all-time high as he is currently seeing massive inflows into bitcoin because it is a hard asset. He cites the fact that banks all over the world are endlessly printing fiat and this will ultimately have dire consequences on the value of these national currencies.
“Money doesn’t grow on trees. Right now, it feels like we crossed the Rubicon where everyone feels money grows on trees,” Novogratz said. He acknowledged that although the Federal Reserve and other Central banks are not doing wrong for conducting QE, these actions will “debase the value of fiat” in the long-run.
Novogratz was then asked for a ballpark figure of where he expects bitcoin to be trading at in the coming months, to which he noted that BTC should double within the next six months. If this does not happen, he will consider “hanging his spurs”.
Is It Really Possible For Bitcoin To Double In Six Months?
Bitcoin is currently trading at $6,881.25 with 3% gains on the day. A price target of above $12,000 seems like a pipe dream at the moment. However, the current scenario with the infinite money printing makes a strong case for the OG crypto.
While central banks are busy firing up their printers, bitcoin is expected to undergo a supply shock in a couple of weeks. After next month’s halving, the number of new bitcoins issued by the Bitcoin network will reduce by half. As BTC becomes more scarce, the price should skyrocket – as was the case with previous halvings.
Overall, this year presents a vital test for bitcoin as a safe haven against uncertainty. We, expect the crypto-asset to pass the test thanks to its appealing qualities like the inbuilt scarcity mechanism.
If it maintains the uptrend that has been evident in the past few days of April, Novogratz might not have to retire from crypto after all.