It’s no secret that bitcoin has had one of its worst moments in recent weeks and months. The loss that the leading crypto-currency has suffered has been very pronounced, and the general market has also suffered greatly. In this situation, the short-term outlook is not exactly promising, but few have focused on the long-term approaches, and that is what Mike Novogratz has done.
According to Mike Novogratz, the chances of bitcoin reaching $500,000 in about five years are quite high. This implies that crypto-currencies such as bitcoin could become a store of value, as has been speculated many times, although regulators have flatly denied this.
And this comment is not isolated, it could be the result of some positivity that has been awakened after bitcoin and other crypto-currencies have been on the rise in recent weeks. At times like this, crypto-currency enthusiasts and market analysts begin to wonder if the crypto-currency winter is showing some signs of ending with this price recovery in recent weeks.
Could bitcoin hit $500,000?
The chances that a crypto-currency like bitcoin could reach such a level are still there. In fact, before China banned bitcoin last year and the crypto-currency and market fell sharply, some analysts from were saying that bitcoin could reach $100,000 and $150,000 by the end of 2021.
The above prediction clearly did not come true, but bitcoin did experience a significant rebound at the end of the year, only China’s decision came at a pivotal moment that halted the accelerated growth bitcoin was experiencing at the time. Had this not happened, bitcoin’s highs would likely have easily surpassed $100,000.
Furthermore, the market for crypto-currencies, and bitcoin in particular, is expected to grow steadily. Day by day, crypto-currencies are gaining attention and recognition from investors around the world, and although they are not at their best right now, the chances of growth are still being considered.
And one of the strong proponents of this theory is Mike Novogratz, who is the CEO of Galaxy Digital and has been an avid crypto-currency enthusiast for some time. He is the one who said that bitcoin could reach $500,000 in about 5 years. He made these statements at a Bloomberg Crypto Summit event.
There, he assured that the conditions for bitcoin’s growth are in place, because if you take into account what a crypto-currency like bitcoin can bring to the economy, it is really conceivable that its growth will be exponential in the next few years.
One of the points he also made, which caused a lot of surprise among attendees, is that it seems that the price of bitcoin is “secure“Only that the situations in the current context of the global economic system have also affected crypto-currencies. In short, that bitcoin will reach 500,000 dollars is a fact, we just have to wait a little and be patient enough for it to happen.
Can bitcoin recover?
From this perspective, it is clear that the perspective Mike Novogratz has given us is somewhat ambitious. But you also have to keep in mind that this is someone who knows what he’s talking about. Also, if you had told someone that bitcoin would go from $8,000 to highs over $60,000, they would probably have said that was impossible, and yet that’s what has happened several times in the last year.
In reality, crypto-currency price drops are more common than investors think. And if a crypto-currency has fallen today, it doesn’t mean that the fall will continue until it reaches zero, because after the fall, there is usually a rally ahead. Now, how long it takes for the rally to happen and how it happens is another matter.
But if we look at how bitcoin has performed in the last few days, there have been some modest increases. This gives investors hope that the winter may be ending sooner than expected.
What is expected is that the global economic situation will improve soon, and with that, the conditions for crypto-currencies will also improve. In addition, we can hope that the attitude of regulators will not be too restrictive, as this could slow down the growth of bitcoin. But for now, there is some hope in the market and this could turn out to be a good thing.