Ever since the middle of December, the most dominant cryptocurrency Bitcoin has been in an absolute rally, going from $6,400 to $10,550 and triggering the altcoin news too to post new gains. As data shows, this is a surge of over 60% meaning that the cryptocurrency outpaced many multi-billion dollar assets. But what pushed Bitcoin up that much is still a mystery and today, we are solving it.
As we could see from the news, the strong surge came shortly after investors expected BTC to drop off a cliff, meaning that the uptrend has caught many traders off guard. As evidenced by the hundreds of millions of dollars worth of short position liquidation, it was something no one could predict.
But according to the top fund manager named Mike Novogratz, what pushed Bitcoin upwards was the liquidity – something that is still driving the shocking rally for the most dominant coin. As he said in the CNBC “Closing Bell” panel, it was “liquidity, liquidity, liquidity” that drove the rally before.
Novogratz further elaborated by citing the low interest rates established by central banks all around the world and “people pumping in money” to which he referenced the attempts by central banks to inject capital into their markets through open market operations. As he said, this is what pushed Bitcoin and what led to the increasing demand for many other stocks and assets.
Talking $BTC. Watch CNBC's full interview with Michael Novogratz, CEO of Galaxy Digital https://t.co/owuT9MhLOi
— Michael Novogratz (@novogratz) February 15, 2020
Obviously, the top fund manager is optimistic when it comes to Bitcoin’s prospects for 2020. In an earlier interview with Bloomberg which was published at the end of January 30th, he gave three reasons why he expects BTC to continue appreciating in the foreseeable future.
Novogratz expressed what pushed Bitcoin to new heights in the crypto news and said that the main three reasons for the surge were (and still are) the following:
- The debasement of fiat money
- Bitcoin becoming digital gold
- The increasing levels of infrastructure
The investor is confident that what pushed Bitcoin are these three reasons which is why he could see more investment inflows, more opportunities and higher prices in the near future.
On a side note, many altcoins have exploded too and confirmed that Bitcoin drove a bull run in their markets as well.
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