One of the popular Bitcoin bull Mike Novogratz stated about the two trends which are pandemic based. According to him, these trends are responsible for speeding the revolution of cryptocurrency. The first comes the policy response. It is the response made to the global pandemic especially from the US government. Then comes the digitalization of all. According to him, we all are head back and in some wired manner, this will be more like bliss for the revolution of cryptocurrency.

Mike Novogratz is not just a known Bitcoin bull but all the CEO of The Galaxy Digital from his experienced understood that these two pandemic-induced trends are surely propelling the cryptocurrency such as Ethereum and Bitcoin with 216% and 390% year-to-date returns. As per the first policy, the federal reserve could cut down the rate of internet and even had loaned down more than $1,5 million to the financial institutions and banks as well. It has also managed to gain the purchase of the US treasury securities with an attempt to bring in the economic stabilization while the pandemic is being stuck. Further, he also added that there is a strong possibility of not a fine macro story. As per the second trend, digital life expansion has tempted more investors for using a digital wallet. This could actually be like a zoomed part of life.

Strategy Inigo Fraser-Jenkins portfolio strategy co-head of the crypto skeptic and Bernstein Research also stated in one of his interviews that pandemic has resulted in more changes in the debt levels, policy environment, and diversification choices for the investors which actually has resulted in Bitcoin being an attractive asset. Now, all we can do is waiting and watch to see how things shall be turning in the future. Chances if inflation being sent to investors is quite high who are actually looking out for the Bitcoin store value with an inflation hedge.

Shivangi Mujumdar

CBW - External Analyst

INDIA