Galaxy Digital CEO Mike Novogratz is optimistic about the forecast for crypto during the last quarter of 2021.
In a new interview with CNBC, the billionaire says that digital assets like Bitcoin (BTC) and Ethereum (ETH) are headed to new highs despite regulatory issues and China’s latest crackdown on crypto.
“I literally see a scenario where we take out the highs in Bitcoin and we have one of these parabolic moves in all the crypto going into the fourth quarter. It’s like when you go to the Kentucky Derby, the horse that turns the corner at the end always runs the fastest.
In investing, in hedge fund investing, and my 12 years of running the macro fund, the assets that are ahead in the fourth quarter usually have great finishes because everyone piles on and pushes the valuations higher, and I see that happening right now.
I see this confluence event where the surprise will be, ‘Oh my goodness, how do we get to $80,000, how do we get to $100,000? How do we get to, $5,000 in Ethereum?’ That will be the surprise. We’ve pushed a lot to the downside, we’ve thrown China, we’ve thrown regulation, and the market continues to hold.”
As Bitcoin goes mainstream, the top executive also says that investors are now choosing the benchmark crypto over gold as a storehold of wealth.
“I think gold is getting displaced quietly. Gold was $1,750 when Bitcoin got launched, and it’s $1,750 today.
I think people that were buying gold are buying Bitcoin, and we’re still only 12% of gold. I think there’s a long way in this replacement trade.”
Novogratz says that, unlike other assets such as stocks, crypto is global.
“Crypto’s global. It’s the first global asset class we’ve really had, where it’s more important to people in Nigeria than it is to people in the United States. Almost all over the world people are having these conversations.”