According to Mike Novogratz in an interview with Bloomberg TV, there will likely be a correction before bitcoin reaches a new record. He predicts that the token could fall to around $50,000 before surging to higher levels later this year. Novogratz also points out that the market is currently too leveraged as investors are chasing high returns, but he believes that spot bitcoin ETFs will provide long-term upside.
As bitcoin continues to soar towards its all-time high, Novogratz believes a correction is necessary for the token to settle at higher levels. He stated, “I wouldn’t be surprised to see some consolidation and correction, but I’m hesitant to predict the exact high for bitcoin because I see this as a phase of price discovery.”
This week, bitcoin saw a 20% increase, surpassing the $60,000 mark. The approval of spot bitcoin ETFs in the US has contributed to this surge, pushing the token into a phase of price discovery. Novogratz believes that the influx of new investors through these ETFs has caused a frenzy in the crypto market.
However, with this frenzy comes a frothy market and unsustainable levels of leverage being used by retail investors, particularly millennials and Gen Z traders. Novogratz warns that these investors could potentially get burned.
On the other hand, the baby boomer generation holds around $85 trillion in wealth, and a small shift of just 1-3% of their investments into bitcoin could have a massive positive impact on the token’s value. Novogratz believes that as more boomers begin to invest in bitcoin, it will surpass its previous peak of $69,000 and continue to rise.
In conclusion, while a correction may be necessary in the short term, Novogratz remains bullish on the long-term potential of bitcoin, especially with the potential impact of baby boomer wealth.
