Galaxy Digital Holdings Ltd (Pink: BRPHF) CEO Mike Novogratz is anticipating a massive move for Bitcoin (CRYPTO: BTC) in 2024.
What To Know: Bitcoin is up approximately 150% since the start of the year largely driven by continued optimism surrounding a potential spot Bitcoin ETF.
Tuesday on CNBC's "Squawk Box," Novogratz said an ETF approval is likely to come before Jan. 10. He also suggested that the Federal Reserve is playing a big role in the crypto rally.
Last week, the Fed opted to keep rates unchanged, and the central bank set the stage for potential interest rate cuts next year.
"That press conference was as dovish as anybody expected," he said, noting that markets are now pricing in a Fed pivot next year.
Novogratz also floated the idea that the government is not going to have any "fiscal prudence" when it comes to the budget deficit. Plus, we are heading into an election year, he said.
If institutions start adding even 1% exposure to Bitcoin next year, demand is going to significantly outstrip supply, he said. All of this is adding fuel to the fire that's heating up the crypto space, which could ultimately spark a "parabolic move" for Bitcoin, he added.
"When you think about the supply-demand dynamic, we haven't really had a situation where you have a global market and you have something of such limited supply, so I think Bitcoin can go far higher," Novogratz said.
"I think first stop next year will be the old highs: $69,000. But it wouldn't surprise me if it went beyond that."
Check This Out: Is Dogecoin Making a Comeback? Galaxy's New Report Shows Growing On-Chain Activity, Technical Indicators Turn Bullish Too
Novogratz told CNBC that he uses gold to measure the potential of Bitcoin, since the two assets have similar characteristics. Gold has a market cap of approximately $12 trillion and Bitcoin has a cap of less than $1 trillion, he said.
"If we were half of gold, we're five to six times where we are now, you know that's $200,000 to $250,000 ... Let's take it one step at a time, but that's my ruler. We've got a long way to go," Novogratz said.
BTC Price Action: At publication time, Bitcoin was up 1.4% over 24 hours at $42,294, according to Benzinga Pro.
Photo: CoinDesk on Flickr and Shutterstock
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!