Mike Novogratz, an American former hedge fund manager and current CEO of an investment firm that focuses on cryptocurrency investments, predicted that Bitcoin will drop below $40,000 and bottom out, before rising back up to new highs.
“We should bottom out at $38,000,” Held Novogratz, the businessman behind the investor Galaxy Digital, which is dedicated to allocating capital to digital assets such as Bitcoin and Ether, in public statements.
“This figure will be attractive to institutional investors, who will see the possibility of buying and pouring millions of dollars in capital into Bitcoin”, he predicted.
In other words, Novogratz expects that Bitcoin will continue to fall so that institutional demand rises, and the cryptocurrency can take off to new highs.
Another executive who agrees with Novogratz is Guido Buehler, CEO of Seba Bank, a Swiss financial institution.
Buehler recently explained that demand and institutional adoption will send Bitcoin price skyrocketing to a new all-time high of $75,000.
“The question is always when. Bitcoin’s dominance, which is around 40%, is key for this to happen,” said the CEO of the Swiss financial institution.
Why is the institutional adoption of Bitcoin important?
The institutional adoption of Bitcoin is crucial as it shows confidence in the asset and it means that companies do not want to be left out of the investment. Therefore, this could be a factor that drives the price of the digital currency.
However, not everything is rosy: Chinese authorities began “chasing” the digital footprint of Chinese civilians searching the internet for information on cryptocurrencies and Bitcoin trading platforms.
Days ago, ordered search engines to block search results on the topic indefinitely.