Novogratz Shocked by ‘How Many Institutions Are Now Lining Up To Try and Get Bitcoin’
Last Thursday (December 7), billionaire investor Mike Novogratz shared his latest thoughts regarding Bitcoin during an interview with Joe Kernen on CNBC’s “Squawk Box“.
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.”
When Kernen asked Novogratz if Bitcoin would still act as a safe haven asset if the current speculative bubble bursts, Novogratz replied:
“If the speculative bubble bursts, Bitcoin will go down for a while. There’s just too much correlation between people with risk assets. If you have made a ton of money here and you’re losing a ton of money here, at one point you’re going to take some profits where you’ve made money. And so, if the S&P was down 20% in the next three days, Bitcoin would be lower not higher, but there is an adoption cycle going on with institutions wanting to buy this because It’s really hard to see a way out for the central banks and for governments.
“It’s really hard to see a way out for this giant deficit that we continue to grow, and it’s growing at [an] accelerating rate. It’s why millennials and Gen Z intuitively are buying Bitcoin because they know they’re kind of screwed. The baby boomers have eaten all their future lunches in lots of ways by building these giant deficits, and so I do think Bitcoin’s going to stay correlated to risk assets in the short run, but that correlation breaks down over time and it’s gonna continue to go up as more people are getting into this community… It’s shocking to me how many institutions are now lining up to try to get Bitcoin into their portfolios.“
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