Another reason Bitcoin will surge in seven months, according to Novogratz is due to the record money printing by world central banks.
”Bitcoin’s surge was inevitable in light of the record money printing by world central banks,” he told CNBC on Monday.
Novogratz explained: “The Bitcoin halving was quantitative tightening. ”The new coronavirus inspired stimulus packages, which have pumped trillions of dollars into world economies overnight.
“It’s like an exclamation point on the macro story of why scarce assets like bitcoin should go higher.
”We will take out $10,000 and we will go to $20,000 by the end of the year. I feel really confident about it,” he asserted.
In his analysis, Novogratz said the cryptocurrency rose past $10,000 in the run-up to the event, which cut miner rewards by 50%, as investor sentiment reached fever-pitch.
Novogratz said he did not participate in the sell-off because he knew a bull is inevitable.
“ I would expect the market to hold at $8,000, $8,500 and to start trading right back up,” Novogratz said.
On his part, Pantera Capital CEO Dan Morehead recently said that Bitcoin had a 50% chance to spike to $115,000 by August next year, as fiat depreciates from stimulus packages.
Morehead who stated this in his recent letter to cryptocurrency investors said: “If the new supply of bitcoin is cut in half (with the May 12 halving), all else being equal, the price should rise.”
The cryptocurrency entrepreneur analyzed bitcoin’s year-to-date performance against gold, oil, and private equity financing. He forecasts that Bitcoin will continue to gain against other asset classes, post-halving, as fiat depreciates from stimulus packages.
Morehead noted that halving historically propels a bull run, due to real or perceived scarcity of supply.
His words: “The post-halving rallies have averaged 446 days — from the halving to the peak of that bull cycle.
”In this cycle, the market did in fact trough 514 days before the halving. If history were to repeat itself, bitcoin would peak in August 2021.
“The second halving decreased supply only one-third as much as the first. Very interestingly, it had exactly one-third the price impact.”