Mike Novogratz: Institutional acceptance drives BTC rise
According to the Galaxy Digital boss, institutions are currently more likely to be able to buy bitcoin that are currently in circulation. This continues to drive the price up.
Galaxy Digital founder and CEO Mike Novogratz believes institutional investors are driving the current bitcoin bull run.
In an interview with BBC World News, Novogratz said governments around the world are printing money and „devaluing fiat money“. While this is driving the current Bitcoin (BTC) Crypto Cash bull run, institutional players getting into crypto is making the bigger difference. The CEO of Galaxy Digital said large firms have changed their attitude to cryptocurrencies in the last three years. This could have an impact on the range of coins available.
„Now we see bitcoin being offered and bitcoin being sold at companies like PayPal (with 340 million customers). Also at major insurance companies in the United States,“ Novogratz said. „As institutions get on board, there’s just not a lot of supply anymore. There are a lot more than 21 million millionaires out there.“
Fun on the BBC. pic.twitter.com/mTSNXMVceZ
– Mike Novogratz (@novogratz) January 3, 2021
Macro investor Raoul Pal agreed with Novogratz and shares his optimistic sentiment. He said he believes it is possible for bitcoin to reach „between $400,000 and $1.2 million“ by the end of this year if the trend continues. Pal said in November he held 98 per cent of his liquid net assets in BTC and Ether (ETH). However, he added that he „still owns enough“.
Novogratz also explained what percentage of their portfolio he thinks investors should invest in Bitcoin
The CEO of Galaxy Digital said bitcoiners should invest up to 3 per cent in BTC and hold it for five years. However, last month he recommended new investors invest 5 per cent in BTC because „Bitcoin is not falling back to zero.“
Many large institutions entered the crypto space for the first time in 2020. Business intelligence firm MicroStrategy announced that it had bought $425 million worth of BTC. This investment is now worth more than US$1.2 billion. The firm later bought on a decline and increased its BTC holdings again. In December, Massachusetts insurance company MassMutual bought US$100 million in BTC for its general investment account.
At press time, Bitcoin was at US$33,727, but it is currently fluctuating. The crypto-asset has repeatedly reached new all-time highs in recent days.