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Bitcoin Volatility Likely to Keep Coming Down, Mike Novogratz Explains Why

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Thu, 12/23/2021 - 15:05
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Yuri Molchan
Hedge fund guru Mike Novogratz believes that Bitcoin volatility is likely to keep declining compared to altcoins and offers his reasons
Bitcoin Volatility Likely to Keep Coming Down, Mike Novogratz Explains Why
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CEO of Galaxy Digital crypto bank and former Goldman Sachs asset manager, Mike Novogratz, has visited the Squawk Box show again to talk Bitcoin.

He claimed that Bitcoin's volatility is lower than that of Ethereum and other altcoins and that the volatility of the former is going to keep going down.

"I do think volatility certainly in Bitcoin is coming down”

Mike Novogratz told the co-host of the show, Joe Kernen, that as more and more institutions are flowing into Bitcoin, the volatility of the leading cryptocurrency is coming down and is likely to continue going that way.

The Galaxy Digital CEO said it is likely to be so because institutions are not expecting quick gains on BTC, so they are looking at Ethereum and other altcoins, whose volatility is higher, according to Novo.

He believes a lot of investors will be seeking "another coin of the month." And it is going to continue this way, Novo believes. Still, he keeps thinking that Bitcoin is a tailor-made store of value and will never be a transactional currency, not even with the existence of the Lightning Network that allows low-cost and fast BTC transactions off the blockchain.

Novogratz also mentioned a great adoption cycle for Bitcoin that occurred this year thanks to Visa's efforts. The U.S. payment processing giant allowed 80 million merchants around the world to accept cryptocurrencies.

Beyond that, he reminded Joe Kernen that, this year, over $30 billion from VCs flowed into Bitcoin. Earlier this month, Novogratz opined that Bitcoin will not go below the $42,000 level.

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Peter Schiff puts his two cents in

Vocal Bitcoin naysayer Peter Schiff, CEO of Euro Pacific Capital and ShiffGold fund, who talks about Bitcoin more than some BTC evangelists, was unable to restrain from a sarcastic comment about "Bitcoin pumpers" on CNBC.

He took to Twitter to suggest that Bitcoin is "whatever buyer wants it to be." By that he meant that because of these "pumpers"—perhaps he meant Novogratz as well—Bitcoin can be highly correlated to the NASDAQ and, therefore, a risky asset. Or, it could be a store of value "if you want a safe haven."

"The perfect asset," he sarcastically concludes.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.