- Bitcoin (BTC) is up by more than 60 percent this year
- Many crypto investors did not expect the strong surge in the price of BTC
- Mike Novogratz is optimistic about the prospect of Bitcoin for 2020
Bitcoin News Today – Since the middle of December 2019, the price of Bitcoin (BTC) has been on a continuous rise. The digital currency has rallied from below $6,500 to more than $10,550 earlier this week. This marks an increase of more than 60 percent, meaning that Bitcoin outperformed a majority of other multi-billion dollar assets except for Ethereum (ETH), XRP and Tesla.
Crypto Traders Didn’t Expect the Strong Surge in BTC’s Price
This massive price surge comes shortly after digital currency investors expected the price of Bitcoin to drop off a cliff. This means that the sudden upsurge caught traders off guard, as evidenced by short position liquidations worth hundreds of millions of dollars over the recent weeks.
A former partner at Goldman Sachs and the CEO of digital currency merchant bank Galaxy Digital – Mike Novogratz – recently gave his opinion regarding this issue. He told CNBC’s “Closing Bell” panel why he thinks Bitcoin (BTC) has embarked on this near-relentless trend higher.
Bitcoin (BTC) Price Today – BTC / USD
In an interview, which was published yesterday evening, Novogratz responded: “liquidity, liquidity, liquidity” to the question of the anchor about what is pioneering the massive upsurge in BTC’s price. The Wall Street investors explained by refereeing to the low-interest rates established by central banks all over the world and “people pumping in money.” He was most likely referring to the attempts by central banks to pump in more capital into their markets via open market operations, hence increasing demand for stocks and other assets, including Bitcoin (BTC).
— Michael Novogratz (@novogratz) February 15, 2020
Bitcoin Will Continue Appreciating – Mike Novogratz
In a recent interview with Bloomberg, Novogratz said that he expects BTC to continue appreciating for the foreseeable future, and he gave some reasons why:
The first reason he gave is the “debasement of fiat money.” He mentioned the ample amount of liquidity in capital markets, encouraged by low-interest rates all over the world, and the seeming fiat currency debasement should help BTC and gold also.
The second reason is that Bitcoin is becoming digital gold. Novogratz said that BTC is maturing into a form of digital gold, and this could push the price of the digital currency significantly higher in the future. He also referenced the performance of the digital currency amidst the brief US-Iran war fears as well as the ongoing coronavirus outbreak. The Wall Street investor is saying that Bitcoin is showing it has investment potential, which would attract more investors with time.
The third reason is the increase in the levels of infrastructure. He said that the increasing level of infrastructure in the digital currency space could boost the price of Bitcoin (BTC).