While many people in the crypto space are still debating whether the current bear market is just a temporary shift or something more permanent, some bullish voices are starting to become more prominent.
One of these voices is Mike Novogratz, the CEO of Galaxy Digital. Novogratz has predicted that Bitcoin will reach a price of $500,000 in the next five years.
“This is a story of two things, it’s about adoption and global economics and while this is a bump in the road in adoption, it is certainly not a u-turn,” Novogratz said during the Bloomberg Crypto Summit. “We continue to see institutions that haven’t gotten involved yet, who see this as an opportunity.”
It’s been a while since we’ve seen any real action in the Bitcoin (BTC) world. Prices have been in a nosedive mode and interest in the cryptocurrency has waned. But it looks like that’s about to change.
According to Novogratz, there is a big surge of activity coming for Bitcoin. He says that there is a lot of pent-up demand for the cryptocurrency, and it’s only a matter of time before institutions get heavily involved.
“[Institutions] are not diving with two feet right now because people working at institutions are a little more cautious. But once we get that balance, equilibrium and start a new narrative- they will be back,” he noted.
Novogratz also pointed out that with central banks around the world struggling to put fiscal prudence back in order, it is becoming increasingly clear that they are having a hard time keeping the economy stable. This is leading to a lot of uncertainty and volatility in the markets.
“I don’t see when I look at the global landscape how fiscal prudence gets put back in a box. We have a debt-to-GDP over 140% [and that] almost never ends without a debt restructuring or hyperinflation. We had 9% inflation this year. People get very angry when you have high inflation,” he said.
While Novogratz’s prediction may seem like a bold prediction, it’s important to remember that Bitcoin has already shown immense growth since it was first created in 2009. In just a decade, the flagship crypto has gone from being worth nothing to being worth over $68,000.
If Bitcoin can continue to grow at even a fraction of the rate it has in the past, then Novogratz’s prediction doesn’t seem so far-fetched.
Of course, predicting the future price of any asset is always going to be difficult, and there’s no guarantee that Bitcoin will reach $500,000 in the next five years. However, it’s certainly possible, and Novogratz’s prediction should not be discounted outright.
BTC was last changing hands at $23.810, up 8.10% in the last 24 hours. The native token of the Bitcoin blockchain has a total market capitalization of $455 billion.
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