Galaxy Digital CEO: Bitcoin Poised to Overtake Gold as Premier Investment Choice
Crypto News – Galaxy Digital CEO Mike Novogratz has characterized the current state of the market as “frothy,” attributing Bitcoin’s (BTC) surge to a phase of price discovery facilitated by the introduction of ETFs, which he says has brought in “a new army” of investors.
With Bitcoin now trading above $60,000 for the first time in two years, Novogratz expressed his confidence during a recent interview with Bloomberg TV, stating that the cryptocurrency is poised to surpass gold as the preferred asset among investors.
Despite Bitcoin’s market capitalization currently standing at approximately one-tenth of gold’s value, which is at $1.21 trillion compared to gold’s $13.79 trillion, Novogratz believes in its potential to become the largest store of wealth in history.
The speculation surrounding Bitcoin’s ascent is fueled by the imminent wealth transfer from baby boomers, who hold an estimated $85 trillion in wealth. Novogratz highlighted that a significant portion of this wealth is managed by registered investors, many of whom now have access to newly approved spot Bitcoin ETFs.
Novogratz envisions a scenario where major investment platforms like BlackRock and Fidelity, which cater to a substantial number of baby boomers, recommend allocating even a small percentage of assets to Bitcoin, potentially resulting in trillions of dollars flowing into the crypto market.
This optimism is further bolstered by the shifting dynamics of wealth management, with younger investors, particularly Gen Z and millennials, showing a stronger inclination towards digital assets like Bitcoin over traditional investments such as gold. Novogratz predicts that this changing sentiment among investors could drive significant adoption of Bitcoin in the years to come.
Regarding Bitcoin’s recent rally, which saw its price reach $64,000 before retracing slightly during the interview, Novogratz cautioned against predicting its next move, warning of potential corrections before it reaches new all-time highs. He reiterated his belief that Bitcoin’s price, despite experiencing volatility, would likely not drop below the mid-$50,000s before rebounding.
The surge in Bitcoin’s price has largely been attributed to the significant demand for Bitcoin ETFs. On February 27, these ETFs reported record-breaking daily trading volumes exceeding $7.6 billion, with BlackRock’s iShares Bitcoin Trust (IBIT) ETF alone experiencing a daily inflow of $520 million, marking it as the largest inflow to date.
Furthermore, Bitcoin is scheduled to undergo a halving event on April 19, potentially reducing the daily supply of new coins. Historically, such events have led to substantial price increases, with Bitcoin’s price typically peaking six to 12 months later.
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