2017’s Crazy Bull Market has People with “Unrealistic Expectations”: Mike Novogratz
- The current price drop is a “bit of consolidation” after a huge surge of 200%
- Mainstream companies are “slowly and steadily moving in”
- “It’s time for the regulators to catch up”
Bitcoin is in deep red by more than 7% as we drop under $9,500 but billionaire investor Mike Novogratz is bullish as ever and said his firm buys BTC during these pullbacks.
“Bitcoin started the year at $3,800, traded at $3,500 and now it’s at $10,200 and so it’s up 200% odd percent already,” the chief executive officer of Galaxy Digital told Bloomberg on Wednesday. “It has had a huge run, and so I think this is a bit of consolidation,” he added.
According to him, the flagship cryptocurrency is getting ready for the next leg up.
“I think it’s when institutions start coming in.”
Institutions, he said are “making sure their ducks are lined up,” by ensuring they’ve got custody. ICE’s Bakkt has already announced its launch date after getting the green light from the CFTC.
Ahead of the launch of its physically delivered daily and monthly Bitcoin futures contracts, Bakkt will start offering its Warehouse services for the secure storage of Bitcoin from September 6. However, greater adoption by mainstream companies will take longer than people think as
“they’re slowly and steadily moving in.”
“What 2017 did, that crazy bull market, is it got people unrealistic expectations on how fast the blockchain revolution, the crypto revolution is actually going to happen,” he said.
“You gotta give them some more runway before we give them the thumbs up or thumbs down.”
But why is Bitcoin outperforming Altcoins?
In 2019, Bitcoin surged as much as over 200%. After the current fullback, BTC is still up more than 150% this year. Meanwhile, altcoins like Ethereum (25%), XRP (-28%), Bitcoin Cash (77%), EOS (25%), Stellar (-43%), Monero (53%), Cardano (8%), and IOTA (-30%) are not looking good at all.
Though we have a few exceptions in the form of Binance Coin (265%), Litecoin (114%), Tezos (122%), and Chainlink (524%), the majority of the cryptocurrencies are struggling.
According to Novogratz, the reason behind the leading cryptocurrency outperforming alternative cryptocurrencies is that it is a niche case, a finished product. As Bitcoin and cryptocurrency market grows, regulators around the world are giving nod to crypto-related businesses.
US Securities and Exchange Commission, however, hasn’t provided enough clarity yet. Crypto enthusiast and evangelists, for instance, are hoping for the approval of a Bitcoin exchange-traded product that, just like with gold, will provide a stamp of validation to institutions.
“This is not like a backwater experiment anymore, this is part of the financial infrastructure,” said Novogratz. “It’s time for the regulators to catch up.”