(CCN) Following the strong corrective rally of Bitcoin, billionaire investor Mike Novogratz stated that every major macro fund should hold at least 1 percent of their portfolios in Bitcoin.
Every two years or so, the Bitcoin network goes through a halvening which decreases the amount of BTC miners can generate.
As the amount of BTC that can be generated decreases, the potential circulating supply of BTC declines.
Given these factors, Mike Novogratz has always emphasized his belief and his long-term investment strategy in the cryptocurrency market.
Previously, he firmly stated that a wave of institutional investors will come into the market and once they do, cryptocurrencies as an asset class are likely to experience an unprecedented rally
Novogratz said:
It won’t go there ($20 trillion) right away. What is going to happen is, one of these intrepid pension funds, somebody who is a market leader, is going to say, you know what? We’ve got custody, Goldman Sachs is involved, Bloomberg has an index I can track my performance against, and they’re going to buy. And all of the sudden, the second guy buys.
The same FOMO that you saw in retail [will be demonstrated by institutional investors].
While Novogratz does not focus on short-term catalysts, there are both short-term and long-term catalysts on the horizon that could contribute to the recovery of BTC.
In the short-term, many analysts consider the launch of Bakkt, Fidelity custody, and halvening to be some of the main factors that could fuel the rally of the asset.
In the long-term, the decline in the circulating supply of Bitcoin and an increase in adoption by both retail and institutional investors are acknowledged as potential driving factors of the asset class.
Hence, Novogratz noted that macro firms should hold a small percentage in Bitcoin if they believe that it will survive and cryptocurrencies as an asset class will eventually be established as a recognized asset class.
