Mike Novogratz Explains Why Crypto Market Is Holding Strong Despite All the FUD
During an interview on Thursday (October 7), billionaire investor Mike Novogratz talked about what he expects to see from the crypto market in Q 2021.
Former hedge fund manager Novogratz is the Founder and CEO of Galaxy Digital, “a diversified financial services and investment management innovator in the digital asset, cryptocurrency, and blockchain technology sector.”
Novogratz’s comments about Bitcoin were made during an interview with Joe Kernen on CNBC’s “Squawk Box” at a time when Bitcoin was trading around the $54,000 level.
When asked by Kernen what he expects to see over the next two to three months.
“Not to sound like the ever bullish guy that I sometimes am accused of being, but I literally see a scenario where we take out the highs in Bitcoin and we have one of these parabolic moves in all the crypto going into the fourth quarter.
“A little bit like when you go to the Kentucky Derby, the horse that turns the corner at the end always runs the fastest… The assets that are ahead in the fourth quarter usually have great finishes because everyone piles on and pushes the valuations higher.
“And I see that happening right now. I see this confluence of that where the surprise will be, oh my goodness, how did we get to $80,000, how did we get to $100,000, how did we get to, you know, $5,000 in Ethereum… That will be the surprise.
“We’ve pushed a lot to the downside. We’ve thrown China, we’ve thrown regulation, and the market continues to hold. And it’s holding because just new money coming in. There was 17 billion dollars of new venture capital that went into the first half of the year. It’s just a tremendous inflow of both talent and money.”
As for the theory — recently put forward by a team of analysts at JPMorgan Chase — that Bitcoin is gradually replacing gold as an inflation in the portfolios of institutional investors, Novogratz had this to say:
“I think gold is getting displaced quietly. You know, gold was $1750 when Bitcoin got launched; it’s $1750 today. And so, early in the year, I had a decent portion of my PA in gold, and I finally just kind of gave up on it.
“I think people that were buying gold arebuying Bitcoin and, you know, we’re still only 12% of gold… And so, I think there’s a long way in this replacement trade.”
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Image by “petre_barlea” via Pixabay
Source: Read Full Article