Mike Novogratz Sees More Bitcoin Adoption Than Ever; Now Short on Stocks


Bitcoin bull Michael Novogratz says, “This is the time for Bitcoin” because of the unprecedented actions taken by central banks to battle the coronavirus fallout and crypto asset’s adoption around the globe.

“The risk on any store of value, if it’s gold, is that enough people believe in it,” said Novogratz in an interview with Bloomberg.

“It’s still a question of adoption. I’m just seeing more adoption here in the U.S. and in Europe than I have literally since I started this.”

Currently, Bitcoin is trading under $6,900, up 3.71% but again recording negative 6.91% year-to-date returns.

Central banks' actions all over the world, according to him, would cause hard assets to be more appealing. Also, Bitcoin’s upcoming halving is another event that will work in the crypto asset’s favor.

This year cryptocurrencies have been under pressure alongside the stock market due to investors choosing safe-haven assets over riskier assets amidst the coronavirus pandemic. Bitcoin is down 34.7% from the February 2020 high of $10,500.

The billionaire investor is as bullish as on bitcoin as ever but the same can’t be said of equity and credit markets. Novogratz said,

“I got short Friday for the first time in a while — both stocks and credit.”

Going into a very good era for crypto

This past week, his crypto investment firm Galaxy Digital reported a net income loss of $32.9 million in fourth-quarter 2019.

Headed by Novogratz, the liquidity provider and asset manager also had layoffs in February 2020 as the firm struggled with weak financial results.

However, CEO Novogratz reassured investors that the recent bitcoin price crash doesn’t invalidate its thesis as a safe haven asset.

In an earnings call last week, Novogratz said Bitcoin was the result of the 2008 financial crisis, “because of a breakdown in trust, a trust in the financial system.”

Now we are in the second crisis, which is both a humanitarian and a financial crisis. And Bitcoin’s anonymous creator Satoshi designed the digital currency for this period of time.

He also said that Bitcoin and Ether should end the year “significantly higher” as he is seeing from hedge fund managers to high net worth individuals starting to buy BTC. He said,

“It feels to me like we are going into a very, very good era for crypto; Bitcoin specifically, but all the crypto.”

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