• Bitcoin could reach $100,000 by the end of the year, according to Mike Novogratz.

• Key factors include regulatory clarity and potential interest rate cuts by the Federal Reserve.

According to Mike Novogratz, founder and CEO of Galaxy Digital, Bitcoin [BTC] is poised to break out of its current trading range and could potentially hit $100,000 or higher by the end of 2024. In a recent Bloomberg interview, Novogratz outlined the factors that could drive this significant price increase.

This sentiment is echoed by Fundstrat’s Tom Lee, who predicts an even higher target of $150,000.His optimism is based on Bitcoin’s recent price surge above $70,000, spurred by the approval of spot Bitcoin ETFs. Novogratz emphasized that if Bitcoin reaches $73,000 soon, it could catalyze a rally towards $100,000. He noted that markets establish ranges, and with Bitcoin flirting with the $70,000 mark, the $100,000 target appears attainable.

Key Catalysts for Bitcoin’s Surge

Novogratz highlighted two primary catalysts that could propel Bitcoin beyond its March high of $73,000 and toward the $100,000 mark: regulatory clarity and actions by the Federal Reserve. Novogratz emphasized the importance of regulatory clarity in fostering confidence and participation in the cryptocurrency market. He noted that even though the regulatory framework is imperfect, there is enough clarity to signal that cryptocurrency is gaining mainstream acceptance. 

The overturned Staff Accounting Bulletin (SAB) 121, proposed by the SEC, plays a crucial role in this context. The repeal of SAB 121 would enable major financial institutions like the Bank of New York and State Street to enter the crypto custody business, significantly enhancing the infrastructure for institutional involvement.

Furthermore, Novogratz mentioned the potential impact of the FIT 21 Act. If approved, this infrastructure bill could see major banks such as Goldman Sachs and Citibank engage in Bitcoin sales and trading. Novogratz believes that the entry of these large institutions will attract substantial investment, driving Bitcoin’s price upward.

Bitwise CIO Matt Hougan echoed this sentiment, stating that the market is undervaluing the impact of Washington’s evolving attitude towards cryptocurrency. Hougan suggested that despite President Biden’s veto on SAB 121, the regulatory environment remains favorable for Bitcoin, and the market should already reflect this positive outlook.

The second key factor is the Federal Reserve’s monetary policy. Novogratz pointed to a potential interest rate cut before the end of the year as a significant driver for risk-on assets, including Bitcoin. Lower interest rates generally lead to increased liquidity in the market, which can drive up the prices of various assets, including cryptocurrencies.

Tom Lee’s $150,000 Bitcoin Projection

Fundstrat’s Tom Lee has presented an even more bullish outlook, predicting that Bitcoin could reach $150,000 this year. Lee attributes his optimism to several factors, including the upcoming Bitcoin halving event, the success of Bitcoin ETFs, a growing user base, and declining inflation. According to Lee, these elements collectively support a substantial price increase for Bitcoin.

As of the time of writing, Bitcoin has risen above $70,000, approaching the critical $73,000 level mentioned by Novogratz. However, trading volume has not been substantial enough to push Bitcoin higher, indicating that short-term consolidation is still possible. As of this writing, Bitcoin is currently trading at $70,943, with a 24-hour rise of 4%.