Bitcoin bull Mike Novogratz has yet again called for a big price target for the leading cryptocurrency.
Novogratz’s price prediction for bitcoin by the end of 2020 is $20,000, the all-time high hit by the world’s leading currency during the 2017 bull rally.
However, he expects the halving event to be a ‘buy the rumor sell the news’ for a few days adding, “I think we're starting a four or five-year bull market.”
Novogratz price prediction came after the flagship cryptocurrency jumped above $10,000, recovering to mid-February levels.
This time he is also a “hodler” because “the macro tailwind and new adoption are game changers.”
Exciting day for $btc. I want to point out that we aren’t even at the years highs. This rally is just starting. Don’t miss the bus.
— Michael Novogratz (@novogratz) May 7, 2020
“Something really significant is happening” noted Novogratz while pointing out the on-ramps of bitcoin and new buyers pouring into the market, just yesterday came the news of macro investor Paul Tudor Jones buying BTC in the fund and calling it a hedge from inflation.
The single greatest economic collapse in history
The ex-hedge fund manager recently joined Jeremy Allaire, co-founder, and CEO of Circle on his first episode of the podcast, The Money Movement where he also talked about how before the coronavirus ridden economy with a full employment rate, the US was running a 5% fiscal deficit.
But now that we have hit the “single greatest economic collapse in history literally,” the Federal Reserve has to throw a lot of ammunition at this fire which means, “we are gonna run 20 to 25 percent,” which is unheard of.
Already the US national debt has reached $25 trillion, adding $35 billion new dollars to this debt every day since April 9th.
But still, the disposable income is higher than it was last year which is because of the central bank printing money like crazy.
“We've got a lot of income still because the government is giving it away but that ends in July and all of a sudden purchasing power goes down and we'll have a deflation,” explained Novogratz.
So much opportunity in the stablecoin space
According to Novogratz, Tether has been “explosive” because it is standing the test of time. Tether is an Asian phenomenon which was used by those Chinese who were not willing to pay taxes and to move money around.
This behavior accelerates during uncertainty and chaos and that's an environment we are in currently.
Also, the fear of germs on paper money due to coronavirus will shift the trend towards digitization.
Talking about the advantage of stablecoins, Kyle Samani, co-founder of Multichain Capital said, transferring stablecoin on the blockchain is a just a “magical experience” which is instant with low fees makes it a better experience than transferring fiat currency.
“There’s so much opportunity in the space and I think we're only just starting to scratch the surface,” said Samani referring to tons of anecdotal stories among people in Venezuela, Argentina, Turkey, and all kinds of jurisdictions around the world where they're trying to escape their local fiat currencies and they want digital dollars.
See the full podast here: