Bitcoin (BTC) has experienced fluctuations in 2023, with the cryptocurrency striving to surpass the $30,000 mark and overcome the remnants of last year’s bear market. Notably, one of the highlights of the year for Bitcoin was the renewed interest shown by institutional investors in the asset.
In this line, billionaire and Galaxy Digital CEO Michael Novogratz has shared his views on the state of Bitcoin in 2023. According to Novogratz, the turning point came when Larry Fink, CEO of BlackRock (NYSE: BLK), the world’s largest asset manager, openly embraced Bitcoin and became a fervent supporter, he said during an interview with Bloomberg on July 29.
Novogratz coined the term ‘orange-pilled’ to describe Fink’s transformation. It’s worth noting that Fink was initially skeptical about Bitcoin’s merits before becoming an advocate for the digital currency.
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“The most important thing that happened this year in Bitcoin is Larry Fink. <…> He got ‘orange-pilled,’ as we say. Orange pill is when you take a nonbeliever, and you make them a believer in Bitcoin. <….> Larry was a nonbeliever. Now he says, ‘Hey, this is going to be a global currency.’ People around the world all trust it,” Novogratz said.
Impact of BlackRock on Bitcoin price
According to Novogratz, BlackRock’s strong drive towards a spot Bitcoin Exchnage Traded Fund (ETF) and Fink’s changing perspective form a crucial “adoption cycle” that could propel Bitcoin to attain another record high.
Part of Fink’s skepticism was captured in a Finbold report that indicated that back in 2018, the executive had stated that clients had ‘zero interest’ in cryptocurrencies. At the time, he pointed out that the company will only be interested in cryptocurrencies once established structures are in place.
However, the U.S. is yet to enact comprehensive regulations to manage the crypto sector, and the Securities Exchange Commission (SEC) has faced criticism for allegedly attempting to stifle the industry.
The endorsement from Fink and his influence within the financial industry is seen as substantial validation of Bitcoin’s position as a legitimate and increasingly mainstream asset. Notably, the crypto market and Bitcoin received a reprieve, recording significant short-term gains following the BlackRock ETF filing.
Currently, attention has turned to the SEC to see if they will approve the ETF. A previous Finbold report revealed that the asset management firm has a good track record with the regulator.
On the other hand, Novogratz remains a Bitcoin bull, banking on the cryptocurrency’s potential future growth. For instance, the investor has stated that investing in cryptocurrencies can be considered a smart move, especially given the prevailing economic conditions.
Meanwhile, Bitcoin continues to trade below $30,000 while attempting to avoid further decline. By press time, Bitcoin was valued at $28,287.
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