Mike Novogratz, the billionaire founder of Galaxy Digital, is bullish on Bitcoin’s future, predicting a floor of at least $50,000 and potential growth towards $100,000. In a recent interview with CNBC, Novogratz attributed Bitcoin’s strong performance to the steady inflows into newly sanctioned spot Bitcoin ETFs in the U.S.
Novogratz emphasized that as long as these inflows remain positive, Bitcoin’s price trajectory is expected to continue upwards. He did, however, caution about a potential correction if net inflows turn negative, highlighting the current market’s buoyancy and elevated funding rates.
Despite these warnings, Novogratz remains optimistic about Bitcoin’s floor price, estimating it to be between $50,000 and $55,000, barring any unforeseen dramatic events. He noted a paradigm shift in the market following the approval of spot Bitcoin ETFs, which has allowed Baby Boomers to invest in Bitcoin through registered investment advisors.
Novogratz also highlighted the reluctance among Bitcoin investors to sell, with many measuring their wealth in Bitcoin rather than in dollars. With Bitcoin’s price venturing into uncharted territory, Novogratz speculated that it could soon surpass the $100,000 mark.
Regarding Ethereum, Novogratz pointed out the recent rally that has seen Ether’s price reach around $4,000, largely driven by anticipation of the U.S. Securities and Exchange Commission (SEC) approving spot Ethereum ETFs. He believes that spot ETFs for Ethereum will eventually receive approval, emphasizing the importance of this development in the market.
Despite the rapid accumulation of Bitcoin by spot ETFs, Novogratz does not foresee these funds holding more than 20% of all Bitcoin. He cited a future balance and the preference among some investors to personally custody their coins or use foreign custodial services due to distrust in their home country’s stability.
Overall, Novogratz’s outlook on Bitcoin and Ethereum is positive, with expectations of continued growth and further market developments. As the cryptocurrency market evolves, investors will be closely watching for any regulatory approvals and market trends that could impact prices.
