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Bitcoin has undoubtedly been on a tear over the past 45 or so days. Since hitting $6,400 in December, BTC has surged by almost 50%, hitting a local high of $9,550 on Thursday.
According to Mike Novogratz — a Wall Street name who used to be a partner at Goldman Sachs and now heads crypto fund Galaxy Digital — there is a confluence of reasons why Bitcoin will continue higher in the months to come.
He conveyed these reasons, or catalysts, in a recent interview with Bloomberg, though he was hesitant to give a BTC price prediction on air.
These Things Could Send Bitcoin Price Soaring In 2020
On January 30th, Mike Novogratz, a Wall Streeter-turned-Bitcoin bull, sat down with Bloomberg to talk Tesla, stocks, and BTC. Unsurprisingly, he was bullish on the leading cryptocurrency.
His optimism wasn’t unwarranted, though, as he cited an array of reasons why he expects Bitcoin to see price appreciation in the coming months and years. These reasons are as follows.
- The debasement of fiat money: Novogratz mentioned that the copious amount of liquidity in capital markets, encouraged by low interest rates the world over, and the seeming debasement of fiat money should help Bitcoin, gold too. The idea here is that the potential inflation caused by lax central banks should prove the value of scarce assets, like Bitcoin, whose inflation rate will be cut in half in a few months’ time.
- Becoming digital gold: Novogratz suggested that Bitcoin’s maturing into a form of digital gold, a digital store of value investment, could support prices moving forward. He specifically cited the asset’s performance amidst the brief Iran-US war fears and the ongoing coronavirus outbreak. The Galaxy Digital CEO is suggesting that BTC is showing it has investment potential, which could help draw in investors with time.
- Increasing levels of infrastructure: The investor said that the increasing level of infrastructure in the crypto industry, which he dubbed the “plumbing” of the industry, could help boost Bitcoin. Indeed, there has long been a need for more robust crypto onramps. With the introduction of Fidelity Investments, Bakkt, and other service providers, BTC could see more investment inflows, correlating with higher prices.
Related Reading: Tesla is the Greatest Performing Asset In 2020. It Even Surpassed Bitcoin
Technical Factors Supportive of BTC, Too
It isn’t only the aforementioned fundamentals that may support Bitcoin bulls in the near future.
Over the past few weeks, NewsBTC has been chronicling Bitcoin price analyses from prominent commentators. Interestingly, the majority of the accurate commentators are bullish, citing technical factors that back the sentiment that an uptrend is rapidly forming.
Fundstrat Global Advisors — a market research firm that has fallen down the crypto rabbit hole — noted in a recent note that the leading cryptocurrency has crossed above the 200-day moving average of its price.
This, they claim, is an extremely bullish sign indicating Bitcoin has entered back into a bull phase, for crossing above this technical level gives the cryptocurrency an 80% six-month forward win rate.
Bitcoin moved back above its 200-day moving average on 1/27… positive milestone and reinforcing 2020 shaping up to be great year for $BTC #bitcoin
– whenever BTC >200D, win-rate (6M forward) jumps to 80% and essentially "re-entering" bull market (>200D)#BTD #bestasset2020 pic.twitter.com/YbpQYHpLaj
— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) January 29, 2020
Also, eerily accurate trader Financial Survivalism said in a recent analysis that BTC recently printed a chart pattern suggesting its price will reach over $11,500 in the coming two or so weeks.
Related Reading: Andrew Yang Just Mentioned Crypto, Again. He Says Bitcoin Can’t be Stopped
Featured Image from Shutterstock
