Mike Novogratz, the founder of Galaxy Digital, is feeling bullish. He believes that BTC’s current rally is a “spectacular” one. But there is more to come.
In an interview with Bloomberg, Novogratz discussed BTC’s uprise. He believes that it is spectacular and shows that the much-anticipated institutionalization took place. Big companies, like Uber, have shown willingness to participate in crypto initiatives.
“The biggest companies in the world — we also had the investments by the Yale, Harvard, and Stanford endowments. All of a sudden the question around institutionalization has been answered,” he said.
However, he also believes that the market will take some time off and consolidate between $10,000-14,000. The host then posed the question of when he’s planning to sell his BTC. He pointed out that it won’t happen at the $14,000 mark (in one interview he admitted that he regretted not selling Bitcoin at that price).
“I don’t think I’m selling the next time we’re up to $14,000,” he said. “I think the next time we get up there it’s closer to $20,000 […] I don’t expect that in the next few weeks, I don’t expect it till the middle or the end of the fourth quarter.”
He proceeded to answer the question about Nouriel Roubini’s recent deprecatory remarks. To remind, Roubini thinks that crypto is a scam and believes that the market is susceptible to price manipulation.
Novogratz did not directly answer the question. At the same time, he emphasized that crypto is a new technology and there has been a lot of hype around it. “It’s been weeded out,” Novogratz said and added that many exchanges are now subject to proper regulation.
Investment banks’ turn
He also touched upon Facebook’s recent foray into the crypto space. He said that the move is a huge statement and gives a lot of legitimacy. Concurrently, he noted that Libra will not compete with BTC. It’s a stablecoin after all while BTC is nothing short of digital gold. Eventually, it can hit the $40,000 mark or even much higher. But it is not going to happen overnight.
That said, Novogratz also contrasted BTC with altcoins like ETH and XRP. He believes that ETH, in particular, faces a lot more competition and called ETH something like web 3.0. The latter, according to him, is “a supercomputer that processes tons of transactions.” At the same time, there is a lot of technical work left. Specifically, ETH will have to fix the scalability issue.
Answering the question of who should enter the market next, Novogratz pointed at investment banks. He also added that “we need smarter regulation” and stressed that the U.S. needs to keep up with the other countries.