Galaxy Digital’s Novogratz: Despite ‘Bubble Bursting,’ Bitcoin Will Prevail As A Store of Value
Michael Novogratz is the CEO of Galaxy Digital Holdings Ltd, though he formerly worked at Goldman Sachs. In a recent Bloomberg interview, he expressed his belief that the Bitcoin price shouldn’t sink lower that it presently is. As anyone in the industry knows, this year has been incredibly unkind to Bitcoin, along with nearly every altcoin.
Novogratz elaborated, saying that the recent slump in the market wasn’t any reason to believe that the slump in the market would bring Bitcoin crashing down lower than it is.
He doesn’t see Bitcoin dipping below $3,000 for the foreseeable future, but he also believes it will stay below $6,000. Formerly, he had predicted that the end of the first quarter of 2019 would bring a $10,000 price tag with it for Bitcoin. However, considering the state of the market, Novogratz clearly changed that opinion.
Digital assets, as a market, aren’t getting the same interest as the macro trading market. Novogratz added,
“We are entering a cool era for macro. Crypto is less exciting now versus macro. Macro got quite boring for many years, and crypto was really exciting.” He added that Bitcoin will end up as a way for users to store wealth, and he sees the inclusion of “a lot of tokenized objects,” which includes limited partnerships, funds, and more.
In December, Novogratz boldly compared the way that the crypto market was performing to a “methadone clinic,” and Bitcoin’s growth last year “a drug.” The commotion around Bitcoin has since settled, and the hype is over.
Back then, the market was largely driven by “pessimism” and fear,” and most people didn’t have high hopes for cryptocurrency maintaining any kind of value.
Last month, Novogratz expressed his optimism that crypto would “flip next year,” considering that is when he expects the prices to “start moving again.” At that point, the banks and other institutions will move from “investing in cryptocurrency funds to investing in cryptocurrencies proper in the first quarter of next year.”