For some time now, China has been going against its ban on cryptos by actively involving itself in the development of the sector. The fact that the country is less hostile could significantly benefit the industry, according to the CEO of Galaxy Digital. Mike Novogratz clarified the effects this could have precisely on bitcoin (BTC).
Towards an increase to $30,000 for bitcoin (BTC)?
The current situation suggests that China is ready to reconsider its crypto ban. Mike Novogratz said that if the trend in the country continues, the price of BTC will rise. Bitcoin could then be worth $30,000 by the end of the month. At the same time, in the longer term, the CEO of Galaxy Digital expects a considerable upside in the crypto market. This could happen over the next few months, as long as China continues to invest in the crypto sector.
The lessening of China’s hostility towards cryptos translates into different actions. For example, the Hong Kong subsidiaries of some major Chinese banks have decided to offer their services to local crypto businesses. Bank of China, Bank of Communications and Shanghai Pudong Development Bank are already collaborating with these entities. At the same time, Beijing has given the green light to the crypto development actions that Hong Kong is carrying out.
Novogratz deplores US regulatory framework
During his speech, the CEO of Galaxy Digital mentioned there US regulators getting tough on crypto. He stated : “It’s not good for America’s chances of leading this industry. It pushes people to relocate, and that’s why we defend ourselves“.
It should be noted that a US regulator attacked the largest exchange earlier this week. Indeed, the CFTC has filed a lawsuit against Binance, accusing it of violating trading rules. A few weeks earlier, the SEC had stopped staking on Kraken.
Recently, Mike Novogratz took sides with bitcoin in the face of statements by a prominent economist. Indeed, on March 28, Steve Hanke declared that the flagship crypto is not a currency, but rather a highly speculative asset. Novogratz replied:It has outperformed all assets on an annual average, over 2 years and 3 years […]. It was safer than JPM and Google“.
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