Galaxy Digital CEO Mike Novogratz thinks Bitcoin is forever beyond $55,000 after cracking beyond $73,500 on Tuesday.
“Things are frothy, funding rates high. In times like this you have to be ready for a correction,” Novogratz told CNBC on Wednesday. “I don’t think we’ll go back below fifty thousand, fifty-five thousand.”
Mike Novogratz On Bitcoin ETFs
In Novogratz’ view, Bitcoin’s price will likely keep ramping up as long as inflows to the newly launched U.S. Bitcoin spot ETFs remain strong.
Since launch, funds launched by BlackRock, Fidelity, and others have collectively absorbed over $11 billion of net inflows, including $1 billion on Tuesday alone. Analysts widely agree that BlackRock’s iShares Bitcoin fund in particular has been the most successful ETF launch in history.
“Once that becomes negative, you’ll see the first real correction,” he predicted.
Novogratz’s company partnered with Invesco to launch one of the new Bitcoin ETFs, which has amassed $368.6 million in BTC.
\"The American people have just voted, and they have voted that they like bitcoin and they like digital assets,\" says $GLXY CEO @novogratz on #Bitcoin. \"And so Washington needs to get off the stick, get off the couch, and start doing something.\" pic.twitter.com/h774xTkFg1
— Squawk Box (@SquawkCNBC) March 13, 2024
The Crypto Regulatory Environment
U.S. regulators were hesitant to approve Bitcoin spot ETFs for years until a lawsuit from Grayscale forced them to change their attitude about the product. Until the funds actually went live, most financial advisors did not believe a Bitcoin ETF would actually be approved in 2024, according to a late 2023 Bitwise survey.
“All of a sudden the U.S. has broadly endorsed Bitcoin,” Novogratz stated. “The American people have just voted, and they have voted that they like bitcoin and they like digital assets.”
Regulators still appear hesitant to approve an Ethereum spot ETF, with analysts now unconfident that one will be approved by May 2024. Securities and Exchange Commission (SEC) chairman Gary Gensler also maintains that one of Bitcoin’s primary use cases is for money laundering.