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• Bitcoin ended May down 8.0% – its value month since November.
• Galaxy Digital CEO Michael Novogratz remains to be bullish on BTC.
• He defined why this morning on CNBC’s “Squawk Box”.

Bitcoin simply had its worst month since late final 12 months however Michael Novogratz – the Chief Executive of Galaxy Digital is holding optimistic on the cryptocurrency.

Novogratz shares his view on Bitcoin

Novogratz attributed the current weak spot in BTC to a scarcity of participation from large-scale patrons or the institutional buyers.

But the billionaire investor talked of two current developments this morning on CNBC’s “Squawk Box” that he dubbed meaningfully constructive for the Bitcoin.

WeChat enabled bitcoin and crypto buying and selling. That’s a giant deal. Hong Kong is formally permitting crypto buying and selling for retail prospects by regulated exchanges. So, we’re seeing Asian adoption.

Novogratz additionally famous that BTC, regardless of a sell-off in May, remains to be up 65% year-to-date which makes it one in every of the greatest performing property since the begin of 2023.

Rate cuts will be a constructive for Bitcoin

Novogratz additionally expects Bitcoin to profit as soon as the U.S. Federal Reserve begins to cut interest rates that he sees possible in the ultimate quarter of this 12 months.

To that finish, the Galaxy Digital CEO mentioned he would undoubtedly decide BTC over a 5.0% assured return on Treasury Bills if he had to make investments $10,000 proper now.

The U.S. economic system will sluggish . . . If we see an actual decelerate in the second half of the 12 months, the Fed will be chopping charges by October and crypto will be off to the races.

Further forward, the whole provide of Bitcoin is about to minimize in half subsequent 12 months that’s traditionally been a tailwind for value appreciation.