Mike Novogratz predicts ‘parabolic’ moves for crypto, but not for gold
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Galaxy Digital CEO and billionaire investor Mike Novogratz has given his outlook on the crypto market for the rest of this year. No major surprises – he’s bullish.
The former Goldman Sachs hedge fund manager is well known in the crypto space as a major Bitcoin and crypto bull, natty dresser, and go-to quote machine.
A good year or so ago, Novogratz was known for his “herd is coming” narrative, predicting Wall Street institutional players stampeding into crypto investing. He’s now swapped the herd for Year 10 maths – parabolas.
“Novo” was doing the media rounds this week – interviewed by CNBC and also speaking virtually at the Token2049 Conference, which wrapped up in London yesterday.
“Not to sound like the ever-bullish guy that I’m sometimes accused of being,” Novogratz told CNBC, “but I literally see a scenario where we take out the highs in Bitcoin, and we have one of these parabolic moves in all of crypto going into the fourth quarter.”
Galaxy Digital is a multi-billion dollar digital asset and blockchain investment firm, so it behooves Novogratz to adopt a somewhat perma-bull stance on crypto.
But it’s hard to disagree with his outlook when he cites figures such as the US$17 billion in venture capital money flowing into crypto in the first half of 2021 alone, as well as the “tremendous amount” of talent moving into the cryptocurrency industry from many sectors, including traditional finance.
Novogratz is not so hot on gold as an inflationary hedging asset, however, stating that he believes it is “getting displaced quietly”.
“Gold was 1,750 [US dollars] when Bitcoin was launched – and it’s 1,750 today,” he continued. “Early in the year, I had a decent portion of my PA [personal allocation] in gold… I finally just gave up on it. I think people who were buying gold are buying Bitcoin.”
On the same day as the CNBC interview, Novogratz spoke at the Token2049 event about his view on the current nonfungible token (NFT) climate.
As reported by Markets Insider, the Galaxy Digital CEO affirmed his positive view of the buzzy crypto sub-sector generally, while also treading a line of caution.
“The adoption of using blockchain to transfer and store [intellectual property] is only going to go in one direction,” he said, before adding: “The markets don’t go straight up forever.”
He then posited, with reference to NFTs, that it “seems to me like a pretty good time to at least book some profits, and fold it back into Bitcoin or Ethereum or another token.”