"Institutions Don't Have Their Fill Yet": Mike Novogratz

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Wed, 01/13/2021 - 18:52
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Alex Dovbnya
Mike Novogratz is convinced that Bitcoin's institutional adoption is in its first inning
"Institutions Don't Have Their Fill Yet": Mike Novogratz
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Bitcoin’s institutional adoption is only in its first inning, according to Galaxy Digital CEO Mike Novogratz.

In an interview with Yahoo! Finance, the former hedge fund manager claims that institutions that are coming into the fold now “don’t have their fill yet:”

The institutions who are coming into this space now that weren't in the space six months ago, [a] year ago, don't have their fill yet. Not even close. We're in the first inning of a 9-inning game with insurance companies, asset managers…

Strong hands are now in charge 

Bitcoin’s record-breaking ascent to $42,000 on Jan. 8 was then followed by a major correction to as low as $30,271 a few days later. It is currently changing hands just under the $35,000 level.     

Bitcoin
Image by tradingview.com

While Novogratz predicts that “dips will be bought,” he also finds an explosive move to the $50,000 unlikely in the short-term.

The entrepreneur also called attention to an important shift in the Bitcoin market dynamics:

What we are seeing is a transition from retail leveraged players into much deeper pockets, much longer holdings hands (institutions). If you are an insurance company and you buy Bitcoin, you are not buying it for two months. You are buying it as a long-duration asset...” 

Related
Mike Novogratz Warns Bitcoin Could Go Down If Speculative Bubble Bursts

Not a means of payment 

In addition, Novogratz touched upon Bitcoin’s supply crisis, a popular narrative in the cryptocurrency space, claiming that leading asset management Grayscale makes the cryptocurrency more valuable by locking more coins in its vaults.

He also added that Grayscale’s shares could “easily” trade at a discount if there is an exchange-traded fund (ETF).

The millionaire views Bitcoin as a store of value, claiming that other cryptocurrencies will be used for payments:

We don’t want to buy shoes one day with something that’s a dollar, and that’s worth two dollars the next day.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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