Mike Novogratz on Bitcoin’s recent rally
Mike Novogratz, founder and CEO of Galaxy Digital, spoke to Yahoo Finance Live recently, to discuss Bitcoin’s recent price action, as well as his outlook on the crypto space.
Speaking to the recent growth of the cryptocurrency, Novogratz said:
This rally is being driven by institutions slowly getting into this space-- high net worth individuals, hedge funds, real institutions. Bitcoin has become a macro asset-- a macro asset to hedge against the debasement of fiat currency both here in the US and abroad. And so that story has really taken hold.
Bitcoin's volatility is one thing that is stopping many potential users from investing in the platform, especially compared to FIAT currencies.
You know, I think we're still going to have volatility in Bitcoin. It's not like you wave a magic wand and a 70 vol instrument goes to a 10 vol instrument. But the maturity process is happening. And institutions are longer hold periods, there are deeper pockets. And so we're seeing a transfer of coins from quicker hands, right?
So what is the next big step in Bitcoin? Mike seems to think the upcoming launch of Facebook's Novi will see some changes.
Facebook is going to launch Novi relatively soon, with 2.3 billion wallets or some giant number. And so you're seeing this transfer of the financial services industry from bank accounts to wallets. And I think that was the unique moment of PayPal, where people said, uh-oh, we gotta get going. And so mark my words-- every single one of the banks from Goldman Sachs, Morgan Stanley within five years has a major presence in and around crypto.