Galaxy Digital Founder Optimistic About Bitcoin’s Future
According to Galaxy Digital founder Mike Novogratz, the market will experience a significant shift in psychology once spot Bitcoin exchange-traded funds (ETFs) are approved by the U.S. Securities and Exchange Commission (SEC). Novogratz believes that if the SEC gives the green light to spot Bitcoin ETFs, Bitcoin is likely to reach its previous highs within a year.
The Impact of New Money and Government Approval
Novogratz asserts that Bitcoin prices are driven by new money entering the market. He also highlights the psychological impact of government approval on market sentiment, stating that when the government allows individuals to buy Bitcoin, there will be a successful shift in psychology among investors.
SEC’s Stance on Spot Bitcoin ETFs
Bloomberg analysts predict that the SEC will approve a spot Bitcoin ETF by January 10, 2024. However, SEC Chair Gary Gensler has remained largely silent on the matter. There is speculation that Gensler may reject all pending spot Bitcoin ETF applications at the last minute, which Bloomberg analysts describe as “amazingly sadistic.”
Since Gensler assumed the role of SEC Chair in 2021, the agency has consistently raised concerns about investor protection and has delayed or denied various ETF applications. The SEC has only approved ETFs for Bitcoin and Ethereum futures products, citing a lack of safeguards against market manipulation in spot products.
Past Highs and Future Potential
In November 2021, Bitcoin reached its all-time high of $69,146 on the BitMEX crypto exchange. If Novogratz’s predictions hold true and spot Bitcoin ETFs are approved, there is potential for Bitcoin to surpass this previous peak.
Hot Take: Bitcoin’s Path to New Highs
Galaxy Digital founder Mike Novogratz is optimistic about the future of Bitcoin, anticipating a surge in market sentiment and prices once spot Bitcoin ETFs are approved. The impact of new money entering the market and the psychological shift that government approval would bring are key factors in Novogratz’s predictions. However, the final decision lies with the SEC, and analysts speculate on Chair Gary Gensler’s stance. If spot Bitcoin ETFs are approved, Bitcoin has the potential to surpass its previous all-time high and reach new heights.
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