Mike Novogratz: Bitcoin Is Moving From Weak Hands to Strong Hands
Billionaire Investor Mike Novogratz says the Bitcoin landscape has totally changed as BTC gravitates from the weak hands to the strong hands.
The Galaxy Digital CEO says the Bitcoin rally is different from the 2017 bull run because it’s being driven by the smart money, who are not going to trade it this time around.
Speaking on Yahoo Finance, Novogratz said, ‘2017 was a global speculative mania… It was driven by small retail investors. It was kind of the first people’s revolution in lots of ways. This rally is being driven by institutions slowly getting into the space, high net worth individuals, hedge funds, real institutions.’
And the billionaire investor, who has understood the qualities of Bitcoin for many years, said the smart money was buying up the Bitcoin to hedge against the debasement of fiat currencies around the world.
‘Bitcoin has become a macro asset to hedge against the debasement of fiat currency both here in the US and abroad and so that story has really taken hold.’
Volatility Will Dampen Over Time, But Expect More
Mike Novogratz believes the smart money coming into the space is going to hodl and dampen volatility over time. Although the former hedge fund manager did say the price fluctuations would be around for a while yet, just easing up compared to times past.
‘I think we’re still going to have volatility in Bitcoin… but the maturity process is happening and institutions are longer hold periods, they’re deeper pockets, and so we’re seeing a transfer of coins from a quicker hands.’
‘Why Bitcoin had so much volatility in the past is that most of the liquidity came on these Asian exchanges like Huobi and BitMEX and Binance that offer fifty, eighty, a hundred to one leverage. And so there was these leverage buyers, almost gamblers/speculators that created a ton of liquidity. A lot of that stuff is being regulated away, and a lot of it is being replaced. A lot of those coins are being replaced by more institutional hands, and so I think we’ll still have volatility. It’s gonna be less.’
Mike Novogratz Is A Bitcoin Bull
Mike Novogratz has been bullish on Bitcoin for over 5 years. And the former Goldman Sachs Hedge Fund manager launched crypto fund Galaxy Digital (TSX:GLXY) around the depths of the bear market in 2018, which is now one of the largest hodlers of Bitcoin with 16,651 BTC under management.
The billionaire investor has regularly appeared on TV, educating anyone who’s willing to listen, and the ever bullish fund manager says everyone should have Bitcoin in their portfolio.
‘Bitcoin is for everyone,’ says Novogratz. ‘Everyone should put 2–3% of their net worth in Bitcoin and look at it in five years and it’s gonna be a whole lot more.’
Novogratz was also bullish on the new appointment of Janet Yellen as the next US Treasury Secretary. The billionaire investor said it would be bullish for Bitcoin and all other hard assets, as she has a history of stimulating the economy. And given the state of the economy, the former Fed chairperson won’t ease up on that.
‘The country’s productivity gap is going to require Janet Yellen to push for more stimulus and more stimulus,’ declared the billionaire Bitcoiner. ‘You’re gonna have a macro macro environment that’s bullish for gold, bullish for Bitcoin, bullish for hard assets.’
The Smart Money Is Driving this Rally
Bitcoin has seen some major rises in the past going from $1k to almost $20k in a year, and then back down to $3.8k a year later. And this year has been extremely bullish, yet somehow quiet.
The Google trends about Bitcoin have been relatively flat, and we have somehow almost reached a new all-time high without any mania whatsoever.
In 2017 when we were reaching these prices the mania was everywhere. Back then it was driven by retail speculators, now the smart money entering the space is driving this rally.
Author: Pablo Clarke
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