Bitcoin price continued its slow recovery this week as the crypto fear and greed index remained in the green zone. The token soared to over $71,000 on Wednesday morning and is quickly approaching last month’s high of over $72,000.
Mike Novogratz is bullish on Bitcoin
Bitcoin has more upside, according to Mike Novogratz, the billionaire founder of Galaxy Digital, a company that provides markets, asset management, and digital infrastructure solutions.
In an interview with Bloomberg, he predicted that the coin has room to end the year at $100,000 if it manages to cross its highest point this year.
He cited several factors for this. First, he noted that there was strong institutional demand for Bitcoin, especially after the launch of spot ETFs earlier this year. Investors have now allocated over $50 billion in Bitcoin and inflows have risen for four straight weeks.
Second, he noted that the crypto industry was gaining regulatory clarity in the United States. There is a bipartisan approach to the industry as evidenced by recent legislation.
For example, Senator Kirsten Gillibrand and Cynthia Lummis have unveiled a bill targeting the stablecoin market. Another recent bill clarified that it is the SEC’s role to regulate cryptocurrencies. The implication of all this is that many big banks will now start offering Bitcoin services, a move that will lead to more demand.
Additionally, there is an election coming up in November and Donald Trump has a good chance of winning. In a recent statement, he said that he would be the most pro-Bitcoin president ever. Since leaving Washington, Trump has made millions of dollars in the crypto industry, especially in NFTs.
Third, there is a demand issue in the Bitcoin market. Recent data shows that Bitcoin balances in exchanges have plunged in the past few months. Also, there are signs that miners are producing fewer coins after halving. As such, we will be in a state where holders are not willing to sell at a time when demand is rising.
Further, Bitcoin has some strong technicals. It has constantly remained above the 50-day and 100-day moving averages. Also, the coin formed an inverse head and shoulders pattern, one of the most popular bullish signs in the market.
Implication for Pepe, Zilliqa, Vechain, and altcoins
Therefore, if Mike Novogratz is correct, it means that Bitcoin’s market cap will jump from the current $1.38 trillion to $2 trillion. If Bitcoin were a company today, it would be the 7th biggest company in the world after Microsoft, Apple, Nvidia, Google, Amazon, and Saudi Aramco. If it hits $2 trillion in valuation, it will be the fifth.
The other implication is that altcoins will do well since they usually do better than Bitcoin during bull markets. Pepe has soared by over 1,000% from its lowest level this year and is sitting at its all-time high.
Other meme coins like Bonk, Floki, and Dogwifhat have also done well because of Bitcoin’s performance. In most cases, traders buy these tokens because of their cheaper notional prices than the large-cap coins.
The other altcoins that could benefit from this price action are Zilliqa (ZIL), VeChain, Solana (SOL), and Ethereum. Similarly, altcoins like IOTA, EOS, and Celestia will likely benefit if Bitcoin continues soaring as Novogratz predicted.
Read more: How to buy VeCain.
