Bitcoin is on the rise with the start of the new month. The first week of October brought good news as the top cryptocurrencies rallied in the market for the first time in weeks. Bitcoin hit a new 4-month high on Friday with its break above $ 56,000. Bulls have their eyes set on new all-time highs before the end of the year, and Galaxy Digital CEO Mike Novogratz has confirmed that assessment.
New investors are holding up the market
Billionaire Mike Novogratz was in CNBC’s “Squawk Box” to talk about the crypto market. Novogratz said new investors are the reason Bitcoin and Ethereum prices have held their high value. Since the bull market was in full swing for the first time in early 2021, the enthusiasm of new investors has increased. But the recent turn of events in the crypto market has sparked a new wave of newcomers to the space.
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Novogratz puts the current global crypto wealth percentage at 0.5%, only a small number compared to other financial markets. Nonetheless, an impressive percentage is stated that the crypto market was still in its teenage years. The billionaire expects the percentage to rise well above 0.5% as more investors move into the crypto space.
BTC price trading north of $54K | Source: BTCUSD on TradingView.com
Speaking of new investors who came into the market and kept prices up, the billionaire said; “It lasts because only new money comes in. In the first half of the year, US $ 17 billion in new venture capital flowed. It’s just an enormous influx of talent and money. ”
Expect parabolic movement
Novogratz’s Galaxy Digital company is a well-known investor in the blockchain and cryptocurrency industries. With that in mind, the billionaire has always been optimistic in the crypto market and has come out loud about his bullish stance. During his interview, the CEO announced that he expects the crypto market to break new all-time highs by the fourth quarter of the year.
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“Not to sound like the always bullish guy I get accused of sometimes, but I literally see a scenario where we take out the highs in Bitcoin and we have one of those parabolic moves throughout the cryptocurrency going into the fourth quarter . ”
Novogratz explained the reasons for his prediction with a racehorse analogy. He compared the movement of the crypto market to “the horse that turns the corner” that wins the race in the end. Novogratz reiterated its optimistic stance for the final quarter of the year. “The assets that lie ahead of us in the fourth quarter usually have great rankings because everyone is moving up and valuations skyrocketing.”
Chart from TradingView.com