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

Thursday 14 January 2021, 5:20 AM AEST - 2 weeks ago

Bitcoins 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 dont 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

Bitcoins 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.

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...

Not a means of payment

In addition, Novogratz touched upon Bitcoins 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 Grayscales 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 dont want to buy shoes one day with something thats a dollar, and thats worth two dollars the next day.

Read full story on U.Today

Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.