Galaxy Digital CEO Predicts Approval of Bitcoin ETF by January 10th, 2024
Michael Novogratz, the CEO of Galaxy Digital, recently discussed the current state of the cryptocurrency market, with a focus on Bitcoin, in an interview with CNBC. Novogratz noted that Bitcoin has seen an impressive 150% increase in value over the past year, and he attributes this surge to the Federal Reserve’s dovish stance. He emphasized the significant role that the Central Bank plays in influencing market trends across different asset classes, including fixed income and equities.
Moving on to the topic of Bitcoin Exchange-Traded Funds (ETFs), Novogratz expressed confidence that spot Bitcoin ETFs would be approved before January 10th. He highlighted the importance of this date due to potential legal implications and anticipated that such approval would further energize the already thriving Bitcoin and cryptocurrency market.
However, despite his optimism, Novogratz acknowledged some concerns, particularly regarding the behavior of high-risk speculative traders, referred to as “de-gens” or degenerates. These traders are believed to contribute to the intense volatility in the cryptocurrency market.
Addressing the classification of Bitcoin as either a ‘safe-haven’ or a ‘speculative asset,’ Novogratz emphasized the global nature of Bitcoin. He dismissed concerns about its illicit uses, stating that the narrative of cryptocurrencies being primarily used for terrorist financing has been proven false. He compared the minimal instances of illicit crypto use to the significant fines imposed on traditional financial institutions like JPMorgan.
Looking ahead, Novogratz remained optimistic about Bitcoin’s future. He suggested that even a modest 1% allocation of institutional portfolios to Bitcoin could significantly increase its price due to its limited supply. He projected that Bitcoin could surpass its all-time high of $69,000 and reach new heights in the coming year.
In terms of regulations, Novogratz mentioned that certain politicians and corporate leaders, including Elizabeth Warren and the Biden White House, have been obstacles to legislative progress in the cryptocurrency industry. However, he also mentioned a bipartisan group that could establish a robust framework for stablecoins and the broader crypto market. He noted that significant progress may be delayed until after the upcoming election.
In summary, Novogratz’s remarks reflect a prevailing optimism about the future of Bitcoin and the broader cryptocurrency market. He sees the Federal Reserve’s dovish stance, potential ETF approval, and increasing institutional interest as catalysts for further market gains. However, he also acknowledges the importance of regulatory clarity for sustained long-term growth.