Bitcoin to Rest Briefly Before Resuming its Upward Trend in Q4

Kavya  |  Aug 26, 2021

Mike Novogratz, the CEO of Galaxy Digital crypto bank outlined the causes behind the current rise in Bitcoin and Ethereum values in a recent interview on CNBC's Squawk Box show.

He expects Bitcoin will resume its upward trend in Q4 or the fourth quarter of 2021.

Novogratz Expected Bitcoin Will Resume Its Upward Trend in Q4

The former Goldman Sachs asset manager, who first purchased Bitcoin in 2013-2014 and purchased 500,000 ETH from Vitalik Buterin in 2015 when it was only $0.99, believes that the recent restart of the crypto surge is due to Walmart and Amazon's interest in the crypto field.

He reminded the Squawk Box co-host that these two retail behemoths had just announced job openings for crypto engineers and heads of crypto-asset departments.

Novogratz interpreted this as a strong indication that Amazon and Walmart plan to be a part of this new trend.

Furthermore, Visa, the global payments card giant, purchased a CryptoPunk NFT (non-fungible token) on Tuesday, paying $150,000 in Ethereum, as if to signal that digital assets will be a significant part of their business.

Novogratz went on to say that he had spoken with the "person who runs crypto at Visa," who verified his understanding of the change.

The Galaxy Digital CEO believes that a large portion of the financial structure will be reconstructed on a blockchain foundation.

Washington Was Able To Persuade Of The Existence Of A Cryptocurrency Business By The Community

Novogratz also highlighted the $3.5 trillion infrastructure plan, a portion of which was supposed to be funded by crypto taxes. Several U.S. senators suggested an amendment that would make life extremely difficult for the cryptocurrency sector.

However, over the weekend of August 6-7, the crypto community went on the offensive, phoning, emailing, and writing to senators and congresspeople to explain why this amendment would stifle fintech innovation in the United States, and it was defeated.

According to Mike Novogratz, Washington saw cryptocurrency as a genuine industry for only one weekend.

Crypto And The S&P 500 May Have A Nice Fourth Quarter

In terms of what may happen to Bitcoin and Ethereum in the future, Novo believes that crypto cannot continue to rise indefinitely and will likely settle and begin consolidating. 

However, Novogratz believes that Bitcoin and other crypto-assets will restart their surge in the fourth quarter.

He believes that the S&P 500 index will have a solid fourth quarter, and that crypto may as well.

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