Novogratz: This one thing drove the Bitcoin price over $ 10,000
Michael Novogratz, the CEO and chairman of Galaxy Digital, said on CNBC's Closing Bell show that liquidity has been the main driver for Bitcoin in the past few weeks.
Since the beginning of the year, the Bitcoin price is 6. 854 dollars 10. 552 dollar has risen and has an astonishing increase of in less than three months percent recorded.
Liquidity will continue to drive Bitcoin
When asked about the key factor for Bitcoin's recovery, Novogratz noted that the liquidity injection into the global financial market was an important component of the increasing dynamics of the cryptocurrency market.
The USA, Europe and other regions besides China have liquidity in the markets especially in the second half of the year 2019 increased in response to increasing geopolitical risks. China will add even more liquidity to the local market in the coming weeks as the fear of a corona virus has negatively impacted productivity and economic growth.
In the past, Novogratz stated that accredited investors, institutions and fund managers are unsure about Bitcoin and its value proposition. The prevailing cryptocurrency has matured so much with infrastructure improvements and growing mainstream awareness that Novogratz said he is now describing Bitcoin as an integral part of a fund's macro portfolio. He added: “Bitcoin is an integral part of a fund's macro portfolio:
“I used to have sessions earlier and had to convince people how Bitcoin works and what doesn't. Now I'm talking about it as a weapon in their macro portfolio, as a hedge against inflation, as a hedge against loose monetary policy and fiat currencies. “
The CME Bitcoin futures market has an average daily volume of around 200 Millions of dollars and other regulated platforms like Bakkt and LedgerX have seen high volumes in the past few months.
What happens with the BTC?
Short-term price movements of Bitcoin are mostly influenced by margin trading platforms like BitMEX. Although the funding rate of perpetual swap contracts has been relatively high over the past week, which has given short sellers an incentive to shorten the market, Bitcoin and the rest of the cryptocurrency market have continued to gain momentum.
The Bitcoin price remained above 10. 000 Dollar and now acts as a strong support, which is widely viewed by investors as an important psychological level for the cryptocurrency.
Alternative cryptocurrencies such as Ethereum are rising sharply in parallel, indicating that market demand has peaked.
Proof of text: cryptoslate