During a recent Bloomberg interview, Wall Street titan Mike Novogratz, who also happens to be the CEO of crypto bank Galaxy Digital, weighed in on the current state of the cryptocurrency market. He states that Bitcoin is grinding along at the bottom, and the BTC price could move ‘significantly higher.’
Where Yale goes, people follow
However, despite the 2018 carnage, Novogratz claims that the recovery is underway due to a transition from retail to institutions. For instance, Yale's David Swensen, one of the most influential endowment fund managers in the world, invested in crypto funds back in November. Meanwhile, the architecture that is required for institutions to work comfortably with Bitcoin is being put in place.
He states that there are four or five ‘decent’ custody solutions, but we will see more institutions dipping their toes into crypto throughout 2019. Earlier, Novogratz also claimed that the lack of proper custody is the major hindrance to institutional adoption.
Another bubble is not happening
Novogratz is certain that Bitcoin is not going to bubble, and its future rise to the top will be smooth and steady. People will learn to differentiate between Bitcoin and other currencies. Notably, Twitter CEO Jack Dorsey also recently praised Bitcoin as the only viable cryptocurrency.
While drawing a comparison between Bitcoin and gold, Novogratz claims that Bitcoin as a digital gold is a good example of a store of value. Unlike any fiat currency, Bitcoin is sovereign money that is not controlled by the government. However, a recent JPMorgan report shows that Bitcoin is not the best choice for a hedge asset due to its extreme volatility.