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As Bitcoin continues to forge a path above five figures, many have tried to ascertain just what got it there. Now, Galaxy Digital CEO and prominent Bitcoin bull, Mike Novogratz, has provided several factors he believes is contributing to the Bitcoin rally.
Libra
Speaking on CNBC’s Squawk Box, Novogratz first noted Facebook’s announcement of Libra, suggesting that Facebook’s recognition of cryptocurrencies has played a major part in the recent influx of investment:
“One of the largest companies in the world has said ‘we believe in cryptocurrencies’ and not just Facebook but MasterCard, Visa, Uber, PayPal all joined on the consortium to say ‘this is going to be part of the financial infrastructure of the world… we’re seeing institutions getting into the space.”
when asked why Facebook's new partners hadn’t accepted Bitcoin yet, Novogratz suggested that they were biding their time:
“First they’re going to accept Libra coin, I would bet you within 18 months, Visa, MasterCard, accept Bitcoin as payment.”
China
Novogratz also cites China’s role in Bitcoins rise, relaying that a huge amount of Bitcoin volume is “coming out of Asia,” adding that it's becoming “harder and hard to get money out legally from china if you’re Chinese,” alluding to the idea of Chinese capital flight via Bitcoin.
However, Squawk Box host, Andrew Ross Sorkin, seemingly believing that he had tripped Novogratz up on this last point suggesting that Bitcoin’s ties to illegality still remains problematic, as per Novogratz own admission of Chinese investors use of Bitcoin during capital flight.
Novogratz snapped back at this point asserting that there was a “whole casino business set up in Macau, which was broadly set up to take money out of China,” adding “there are more 100 dollar bills in circulation than there are ones because people use it as a store of wealth aboard. None of these systems are going to be foolproof.”
Sold the top?
Moving on, Novogratz admitted that he had sold during Bitcoin’s high yesterday:
“I sold a little bit I wish I sold a lot,” he said, I think we’re going to be in a range between $10,000, and $14,000. I think we put a tradable top in yesterday, it was parabolic it was a frenzy.”
What do you think? Will we see Facebook's partners accept BTC any time soon? And is China one of the causes of Bitcoins rise? Let us know in the comments!