Micheal Novogratz has said halving is not reason for the sudden value surged Bitcoin is currently experiencing.
The crypto billionaire made this clarification to cushion the widespread claim by some pessimists who observed the possibility of Bitcoin returning to $1000 after halving.
Jason A Williams, co-founder at partner Morgan Creek Digital, shared a commentary by well-known Trader Eric Choe who aired his bearish view of Bitcoin price after halving.
Choe opined that Bitcoin lovers should not have a very high expectation on Bitcoin after halving.
The crypto trader observed that the price of Bitcoin may nosedive immediately after halving as against the expectation of many Bitcoin enthusiasts.
Mr. Choe explained that it is possible Bitcoin goes below $1,000 after Halving or below $3,000 by the end of May 2020.
Responding, Micheal Novogratz states that “Halving is certainly important,” however, it is not the major thing driving the price of Bitcoin at the moment.
The Bitcoin billionaire posited that the major driver of Bitcoin price is the increasing number of investors coming into the space day in day out.
He said: “Halving is certainly important but what is making $BTC price rally is mostly new players buying it as a result of the new macro backdrop”.
Halving is certainly important but what is making $BTC price rally is mostly new players buying it as a result of the new macro backdrop. This rally will last. https://t.co/Xk6CzyMzL9
— Michael Novogratz (@novogratz) May 2, 2020
Novogratz said there’s no gainsaying that “this rally will last” as against the expectations of those who share a pessimistic view of the halving.
Bitcoin Price: An Overview
Bitcoin has been on the increasing end for some days now. The digital asset went beyond $9000 yesterday and today, giving enthusiasts the thought that Bitcoin will rise beyond $10000 in the next few days.
Early April, Bitcoin was trading below $7000. However, before the end of the month, the digital asset had moved above $8000, especially on April 30th, Bitcoin was trading around $9371.
Bitcoin halving is less than 8 days. The seasonal event is expected to happen on May 12. The event will reduce the number of Bitcoin entering circulation by half for the fact that it will reduce the mining reward.
Meanwhile, at the time of writing, Bitcoin is trading below $9,000 after staying above the range for a long time today.
