The zeal surrounding Bitcoin and its potential growth continues unabated, with key figures in the digital asset space making noteworthy predictions. In a recent interview with Forbes, Michael Novogratz, CEO of Galaxy Digital, emphasized the generational shift in the adoption of Bitcoin, particularly among younger demographics seeking to rebalance economic scales.
He anticipates a gradual but consistent increase in bitcoin allocations within investment portfolios as Registered Investment Advisors (RIAs) recognize its potential for diversification and wealth preservation. Novogratz states:
“The adoption of Bitcoin has been a generational shift, with younger generations embracing it as a means of rebalancing the economic scales inherited from the Baby Boomers.”
Galaxy Digital CEO: Bitcoin as a Store of Value
Novogratz drew parallels between Bitcoin and gold, stating that despite skepticism around Bitcoin’s value, it holds a similar significance as a store of value. He highlighted the ongoing generational adoption and foresees the integration of bitcoin into the financial system.
A noteworthy trend is emerging as investors increasingly favor Bitcoin Exchange-Traded Funds (ETFs) over traditional gold ETFs. Lawrence Lepard, an Investment Manager at Equity Management Associates, noted this shift and criticized the skepticism around Bitcoin ETFs.
Related reading: Gold ETFs See Massive Outflows as Bitcoin ETFs Surge
He argued that Bitcoin is more resilient to manipulation compared to gold, citing its substantial increase of 5x in 18 months. Lepard pointed to the complexities within gold’s paper markets, particularly emphasizing practices around the GLD ETF that allowed the creation of paper gold without significant price increases.
The Impact of ETFs on Bitcoin
Michael Novogratz states that bitcoin has received a substantial boost from the recent approval of bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). According to Novogratz, this development signals the dawn of a new era characterized by increased institutional and retail involvement with digital assets.
ETFs, known for their accessibility and familiarity among traditional investors, are regarded as a crucial catalyst for expanding the investor base for Bitcoin. Novogratz envisions ETFs playing a significant role in overcoming some of the liquidity and volatility concerns that have historically deterred more risk-averse investors from entering the digital asset market.
Despite his positive stance on the impact of ETFs, Novogratz issues a cautious note regarding lingering regulatory uncertainties that cast a shadow over the industry’s future.
His critique extends to the recent approach taken by the SEC, emphasizing the necessity for a more supportive regulatory framework. According to Novogratz, such a framework is essential for fostering innovation and stability within the sector.
Bitcoin to Reach $150K
In a separate CNBC interview, Novogratz shared insights into Bitcoin’s price trajectory. While exact predictions are challenging, he anticipates Bitcoin retesting its previous high of $69,000 in the short term. Novogratz suggested that breaking the $69,000 barrier could help Bitcoin to reach $150,000.
“Usually, you don’t go right through the first time you touch them, and you’ll come all the way back….. then it takes off again, but once you break $69,000, it could measure to $150,000,” he states.
Galaxy Digital CEO reiterated the pivotal role of institutional money entering the market, particularly through ETFs, as a significant factor that could drive Bitcoin’s price higher in 2024.
However, Novogratz acknowledged the possibility of a price correction, suggesting levels around $45,000 or $42,000. Such corrections might be triggered by regulatory concerns or an overextended market, potentially leading to investor panic and sell-offs.
