Galaxy Digital CEO and Bitcoin bull Mike Novogratz says Bitcoin is undergoing a massive rally that, unlike its 2017 boom, is bolstered by increasing institutional adoption.
In a new episode of The Interview – Crypto, hosted by Real Vision CEO Raoul Pal, Novogratz says that although Bitcoin may be ascending parabolically as 2020 comes to a close, he does not see this move as a 2017 repeat.
Novogratz believes this Bitcoin rally has staying power. The head of the digital asset management firm suggests that BTC could double in price over the course of the next year and take a sizeable bite out of gold’s market cap.
“I am so much more convinced that this is not 2017, where I kept telling everyone this was a speculative mania, that this is the start of a multiyear, multi-hundred percent giant, transformative rally. It is easy for me to see Bitcoin being at 50,000 next year.
That is 10% of gold. I think gold is going higher. I know once we get to 10% of gold, we are like, ‘Why is it only 10% gold? Why is it not 25% of gold?’ Then it is going to eclipse gold at one point. That is not going to happen in a year. I guarantee it is not going to happen in a year, but these things happen faster when you are getting these network effects.”
The Digital Galaxy CEO highlights the entry of MassMutual in BTC. The 169-year-old insurance giant invested $100 million in Bitcoin. Novogratz says it is an important milestone that could inspire other companies to buy in.
“I just remember the guy that founded Litecoin sold along the top, and I was like, ‘Dude, not great as the founder to unload everything literally on the high tick. Great as a speculator, but not as a community builder.’ I do not see new people entering those communities. To be fair, they feel almost more like passing the parcel or Ponzis. What is different in Bitcoin? In Bitcoin, I see new people entering all the time, institutions.
Today, Mass General enters. That is a huge, huge deal, which we can maybe get to later…
If we step back and think about how important this is, if an insurance company can do this and be public about it, there is not an institution in the world that has to feel the shame about buying Bitcoin. They are all – and I can tell you from every bank, we are dealing with, banks that we have not dealt with before – ‘How do we get involved?'”
Novogratz says he is beginning to see a shift in the market as more and more deep-pocket investors are finding value in holding Bitcoin. In the eyes of the Galaxy Digital CEO, the challenge now is that institutions want exposure fast, but there’s growing competition for a slice of the BTC pie.
“Now, the problem is it is happening so fast, you cannot take advantage of it as much as you want to because you cannot hire the right people fast enough, and you got a lot of competition.”
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