Novogratz: COVID-19 situation in US will make Bitcoin go to $20,000

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Last Updated on 29 July 2020 by CryptoTips.eu

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While Europe, according to some, is preparing for a second wave of the corona virus, many investors have not yet really paid attention to what is happening on the financial markets. One of the biggest victims of the corona outbreak in recent weeks is the US dollar. While investors realize that Europe is doing better than the U.S., the dollar is falling, and Bitcoin is climbing to ever-higher levels. Mike Novogratz thinks the two are linked.

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Bitcoin, Corona and gold

According to Mike Novogratz, founder and CEO of Galaxy Digital, the weakness of the U.S. dollar and the rise in the Bitcoin price have been linked in recent days.

After all, he believes that the expansion of the corona pandemic in the United States is forcing investors to let go of the dollar and look for other investments such as Bitcoin and gold.

The weakness of the dollar is indeed remarkable. With a level of about $1.17 per Euro yesterday, it reached a level not seen in the last two years.

Novogratz is convinced that investors are aware that Europe is in better shape than the United States as far as Corona is concerned and that the recession will therefore last much longer in New York and Los Angeles than in, for example, Paris and Rome.

Since the beginning of July, the price of gold has risen by more than 7% to reach new peaks, while Bitcoin has risen by more than 20%.

He said in an interview on Squawk Box, one of the most famous financial talk shows on CNBC.

Stimulus

Furthermore, he expects a lot from the second stimulus package that American politicians are negotiating in the meantime.

Republican lawmakers in the United States unveiled plans earlier this week for a $1 trillion stimulus package, including a new round of $1,200 payments and additional funds for small business loans.

U.S. investors, however, sent equities down as markets braced for a long period of negotiations between Democrats and Republicans.

Last time, however, many of these payments went directly to crypto funds, as the American crypto exchange Coinbase noted.

According to Novogratz, that will be the case this time as well, so he expects a Bitcoin price of up to $20,000 by the end of the year 2020.