Mike Novogratz, a prominent cryptocurrency investor and chief executive of Galaxy Digital, shared his thoughts on Bitcoin's recent surge to more than $30, 000 in an interview with CNBC.
Mr Novogratz stressed that the rally was mainly driven by password communities rather than institutional investors, explaining that "when prices rise, the adoption cycle always accelerates." He also points out that hedge funds have been participating in a surge in the market, while large US-based institutions have not invested heavily.
Mr Novogratz shrugged off concerns about market manipulation, arguing that it would be extremely difficult to manipulate assets such as Bitcoin and Ethernet because of their huge market capitalisation. "it's hard to manipulate a trillion-dollar market," he said. " He acknowledges that smaller coins may be more vulnerable to such strategies.
The password tycoon also noted that the market remained resilient despite regulatory challenges, such as Wells Fargo notices to Paxos and Coinbase. "despite all these regulatory attacks, the market is still going higher," Novogratz asserted. "
He attributed Bitcoin's previous fall from $60,000 to the aggressive interest rate policy adopted by Federal Reserve Chairman Jerome Powell, which he believes makes sense in the context of broader market concerns.
Looking ahead, Novogratz said markets expected an end to Powell's aggressive monetary policy, which could bode well for assets such as gold, bitcoin and ether. He said he was optimistic about the encryption price, saying the market was quite certain that Chairman Powell was coming to an end.
