On CNBC's Squawk Box, Michael Novogratz shared his views on the rapid growth of US stocks and cryptocurrencies. He noted significant interest in crypto assets from large companies, especially from the American investment consultant RIA (Registered Investment Advisor), which manages $42 trillion.
According to Novogratz, despite potential market consolidation, it has become easier for baby boomers to gain access to Bitcoin through Bitcoin spot ETFs. The founder of Galaxy Digital noted an influx of buyers into spot cryptocurrency ETFs, who are not just traders, but also long-term holders. Thus, they reduce the market supply of Bitcoin and create the basis for the growth of the BTC price by the end of the year, Novogratz said.
When asked about the downside risks of Bitcoin, Novogratz suggested that the first cryptocurrency could fall to around $45,000-$42,000 due to regulatory issues or market overstress. However, such a scenario is unlikely, Novogratz is sure.
At the same time, the head of Galaxy Digital reacted with caution to the forecast of co-founder of the investment company Fundstrat Thomas Lee that Bitcoin will reach $150,000 by the end of the year. Novogratz expects a test of the previous high, and perhaps a stronger performance, which will depend on macroeconomic factors and the monetary policy of the US Federal Reserve (Fed).
Discussing regulation of cryptocurrencies, Novogratz mentioned the willingness of large banks to serve crypto companies, despite the conservative nature of these financial institutions and their ongoing concerns about the volatility of cryptocurrencies. However, Novogratz is confident that this situation will normalize in the United States.
Late last year, Novogratz suggested that the launch of cryptocurrency ETFs would be a turning point for the crypto industry and would have a positive impact on the Bitcoin price.