Mike Novogratz makes his sales pitch for cryptocurrencies in 2021.
So, investors should standby for the crypto trade to unfold fold next year, according to Mike Novogratz, founder, and CEO of Galaxy Digital.
While most would be happy to see 2020, an annus horribilis, draw to a close, it has been a stella year for cryptocurrency investors, particularly Bitcoin, which is up 213.7% against the USD at the time of writing this piece.
“investors should standby for the crypto trade to unfold fold next year, according to Mike Novogratz”
WEALTH TRAINING COMPANY
Some of our regular readers may recall a piece we wrote early in January entitled, “Mike Novogratz Bets on a Crypto Recovery”, which turned out to be a bang on the money call.
“$Btc finishes over 12k” tweeted Mike Novogratz
We remember writing back in January 2020 before such words as pandemic, lockdowns, and curfew became household words the following;
“Mike Novogratz bets on a crypto recovery could also mean that the billionaire entrepreneur is forecasting an economic-financial crisis playing out sometime in the first and second quarter of 2020” We wrote in the piece entitled, Mike Novogratz Bets on a Crypto Recovery.
But even the tin foil hats prediction seemed tame by comparison to what unfolded. Who would have predicted the 2020 Pandemic Great Global Lockdown, curfews that paralyzed economies, triggered mass unemployment, and sent public deficits to the moon?
“$Btc finishes over 12k”
Back to the theme, Mike Novogratz makes his sales pitch for cryptocurrencies in 2021 could be worth tuning into, bearing in mind the crypto kingpin has a track record of making winning calls in the crypto space
In an interview on CNBC’s “Squawk Box,” Novogratz said he believes bitcoin will eventually begin to trade with more stability as additional institutional investors adopt the digital coin as part of their portfolios.
Mike Novogratz reckons that Bitcoin’s recent rally, currently over $20,000 per bitcoin, is different from what we saw in 2017. Bitcoin reached a peak of $19,783 per bitcoin in late 2017.
“Listen, 2017 was a global speculative mania. And if you even look on, like, Google searches, we’re nowhere near what 2017 looked like, right? It was driven by small retail investors. It was kind of the first people’s revolution in lots of ways” said Mike Novogratz.
“Listen, if something dramatic changed — if Janet Yellen came in and said, we’re going to arrest anyone who touches a Bitcoin, you know, the regulatory risk is there” – Mike Novogratz
Mike Novogratz makes his sales pitch, a predictively bullish one for cryptocurrencies in 2021
Mike Novogratz sees cryptocurrency volatility, and a continuing rally being spurred by the so-called smart money. “This rally is being driven by institutions slowly getting into this space– high net worth individuals, hedge funds, real institutions. Bitcoin has become a macro asset– a macro asset to hedge against the debasement of fiat currency both here in the US and abroad. And so that story has taken hold” said Mike Novogratz.
Here comes the caveat, the string of words that you would do well to high-light with a bright-colored pen as Mike Novogratz makes his sales pitch
“Listen, if something dramatic changed — if Janet Yellen came in and said, we’re going to arrest anyone who touches a Bitcoin, you know, the regulatory risk is there” said Mike Novogratz.
As traders know too well their chances of surviving improves if they make sure they are on the right side of the central bank’s cannons. What’s more, we have been warning that precious metals and cryptocurrencies are a threat to the central banks rule by fiat currency.
Put simply while Mike Novogratz makes his sales pitch, he also underplays a real possibility that the central banks and regulatory authorities could regulate cryptocurrencies out of existence, which is also what we have been warning
So here comes the zinger, that nobody is talking about and perhaps the most critical piece of information for crypto traders ever;
News that The FCA bans the sale of crypto-derivatives to retail consumers, released on October 6 barely gets mentioned
“Mike Novogratz makes his sales pitch but will 2021 see cryptocurrencies outside the central remit banned, outlawed” – Wealth Training Company
Mike Novogratz makes his sales pitch, yet he makes no reference about the FCA ban on crypto derivatives
The main points of the FCA ban on crypto derivatives are below.
“The FCA considers these products to be ill-suited for retail consumers due to the harm they pose. These products cannot be reliably valued by retail consumers because of the:
- inherent nature of the underlying assets, which means they have no reliable basis for valuation
- prevalence of market abuse and financial crime in the secondary market (eg cyber theft)
- extreme volatility in crypto-asset price movements
- inadequate understanding of crypto-assets by retail consumers
- lack of legitimate investment needs for retail consumers to invest in these products”
Is the cavalry moving in for the kill, banning retail investors for their safety while Mike Novogratz makes his sales pitch about cryptocurrencies?
The FCA move is the first shot across the bow that the FCA and monetary authorities could be about to regulate cryptocurrencies out of existence.
But this should come as no surprise, concerning precious metals investors are constantly battling with rigged markets. It is so common now that it has become public knowledge. In open market operations, central banks employ traders, their aim isn’t to make a profit but to “stabilize markets”, and they are active in currencies, targeting yields curves, long and short, and propping up stocks. All this would not be possible if the system were not ruled by fiat.
We believe cryptocurrencies were the trial run, the beta tests for the central bank version of cryptocurrencies, which will be rolled out in the coming great reset to support universal income.
Mike Novogratz makes his sales pitch but will 2021 see cryptocurrencies outside the central remit banned, outlawed. Maybe that is why FCA has banned crypto derivatives, which will come into effect on 6 January 2021.