Bitcoin price recently dropped by over 50%,
after the fear of coronavirus started spreading around the world. The coin,
which started seeing significant gains in the first two months of 2020,
suddenly dropped from approximately $7,100 to $3,900, before seeing a recovery
to $5,500, where it remained for several days.
Earlier this week, Bitcoin once again started
to grow, presumably once again over fear, but this time, the fear was based on
the expected future of the US dollar.
The Fed announced that it is sitting on ‘infinite
cash,’ indicating that it is willing to provide as much money as possible to
provide short-term relief. This caused investors to start investing in
different assets, including cryptocurrency and gold.
Billionaire Mike Novogratz
expects BTC to rally
Meanwhile, in a recent televised interview with CNBC, a billionaire investor and a known Bitcoin bull, Mike Novogratz, stated that this is exactly the time for Bitcoin to rally. Novogratz addressed the situation regarding the economy and US’ and other governments’ decisions to take whatever steps necessary to boost the economy.
With central banks once again ‘running amok,’
Novogratz believes that this is the time for Bitcoin to take its role as a safe
haven and rally enough to attract investors, old or new.
Novogratz seems certain enough in his
prediction stating that: “It needs to rally this year. If at the end of
the year Bitcoin’s not a lot higher, I’m going to scratch my head and say,
‘Look, what the heck is going on?”
Bitcoin remains highly volatile
At the same time, other crypto experts
provided conflicting predictions, stating that it would
not be surprising if the coin went sub-$1,000 should the situation continue.
Granted, such predictions were given prior to the Fed’s statement of ‘sitting
at an unlimited amount,’ which are believed to have caused a recent surge.