BlackRock's CEO Embraces Bitcoin: Insight from Galaxy Digital's Novogratz

In the world of cryptocurrency, being “orange-pilled” means transforming from a crypto skeptic into a believer, particularly in Bitcoin. This term is now being used to describe Larry Fink, the CEO of BlackRock Inc., the world’s largest asset manager, by none other than Mike Novogratz, a prominent figure in the crypto world.

Bitcoin’s resurgence in the wake of a year filled with crypto industry scandals and losses has been a sight to behold. Novogratz attributes his continued optimism to Fink’s transformation. Earlier this year, BlackRock made waves in the crypto community when it applied to launch a physical / spot Bitcoin exchange-traded fund (ETF). If approved, this move could potentially trigger a fresh wave of investment in the cryptocurrency. However, it’s Fink’s newfound faith in Bitcoin that has truly invigorated Novogratz. Fink now views Bitcoin as an “international asset.”

Novogratz, CEO of Galaxy Digital Holdings, told David Rubenstein in an interview with Bloomberg last week:

“He got ‘orange-pilled,’ as we say. Orange pill is when you take a nonbeliever and you make them a believer in Bitcoin … Larry was a nonbeliever. Now he says, ‘Hey, this is going to be a global currency.’ People around the world all trust it.”

Novogratz, the CEO of Galaxy Digital Holdings, believes that Fink’s conversion and BlackRock’s ETF initiative are part of an “adoption cycle” that could potentially propel Bitcoin to surpass its all-time high of nearly $69,000, achieved in 2021.

Novogratz’s optimism is further fueled by the anticipation of the Federal Reserve’s potential pivot toward cutting rates. Amid these developments, Bitcoin’s price has fluctuated between $29,000 and $30,000, marking a year-to-date increase of over 70%.

Novogratz also touched on the recent ruling in the SEC’s case against Ripple Labs, which he views as a “huge victory” for the crypto industry. He also discussed various topics, including Sam Altman’s Worldcoin project and Galaxy’s commitment to maintaining a presence in New York.

Novogratz, a former partner at Goldman Sachs Group Inc. and Fortress Investment Group, is a well-known cryptocurrency advocate. He first bought Bitcoin when it was trading at about $100 and later founded Galaxy Digital in 2018, a firm that offers financial services such as trading, investment banking, and asset management in the crypto industry.

Despite experiencing a setback last year with the Luna token, Novogratz remains optimistic about the future of cryptocurrencies. He advises young investors with a high risk tolerance to consider investing in Alibaba stock, silver, gold, Bitcoin, and Ethereum. For those with a lower risk tolerance, he suggests a portfolio mix of 30% in these assets and 70% in bonds and perhaps an index fund.

Novogratz also commented on the Worldcoin project, stating that it’s not wise to bet against Sam Altman at the moment. He believes that the price of the Worldcoin token could potentially go a lot higher due to the current AI hype cycle.

Despite the recent enforcement actions by the SEC against major crypto firms, Novogratz remains positive, citing the recent court ruling in the SEC’s suit against Ripple as a victory for the crypto industry. He believes that this ruling proves that the rules are far from clear.

As for Galaxy Digital, Novogratz affirmed the firm’s commitment to maintaining a presence in New York, even as parts of its business move offshore.

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