Michael Novogratz gives insights into the crypto space in his most recent interview.
The Bellwether cryptocurrency Bitcoin is coming off recent highs, almost hitting 100,000 USD on news of a friendly crpto Trump administration elected in November.
But what everyone is wondering about is who will be the new head of the US Securities and Exchange Commission.
Best pick for the top job at the SEC, Michael Novogratz gives his insights
Founder and CEO of Digital Assets, Michael Novogratz, wants to see Brian Brooks, an American Banker, entrepreneur, and technologist heading the SEC in the new administration.
“I know him very well. He was the head of the Office of the Comptroller of the Currency OCC. He knows our industry’s dead end,” said Michael Novogratz.
“But anyone Trump picks, given the overall pro-crypto attitude of the administration is going to be fine,” he added.
“The Bellwether cryptocurrency Bitcoin is coming off recent highs, almost hitting 100,000 USD on news of a friendly crpto Trump administration elected in November”
MICHAEL NOVOGRATZ
Michael Novogratz gives his insights into the most pro-crypto administration ever
“If you think about it Vance, Elon, and Kennedy are all crypto advocates.
Kennedy said he has his whole net worth in crypto,” said Michael Novogratz.
“Howard Lutnick, who just became Commerce Secretary, is a great advocate of cryptos,” he said.
“So all the guys around the table like our space,” he added.
Indeed, even Donald Trump has got his coin and an NFT issuer.
“They believe in the digital asset world, blockchain and bitcoin. So the whole energy of this administration is going to be so different to the Elizabeth Warren and Gary Gensler era,” he said.
“They believe in the digital asset world, blockchain and bitcoin. So the whole energy of this administration is going to be so different to the Elizabeth Warren and Gary Gensler era”
MICHAEL NOVOGRATZ
Michael Novogratz wants to see policy change which allows US crypto players to participate without fear of litigation and not being able to get banked.
“Our audit at Gallaxy costs three times what it would if we were a non-crypto company.
So, crypto tax has been brutal, and that will come way down,” said Michael Novogratz.
How will altcoins perform in this new benign crypto climate, Michael Novogratz gives his insights
He sees a distinct Bitcoin story and believes rising tides lift all boats concerning altcoins.
“Bitcoin has always been the gateway drug for the digital asset space with better regulation around the market structure of what is a security and what is a commodity, what is a utility token?
Once we get clarity on it, you will see more development and innovation,” he said.
He believes the big players were scared to innovate because of punitive policies, which he thinks will change.
“El Salvador was ridiculed by many for adding 162 Bitcoins to national reserves in August 2024 when the bellwether cryptocurrency was trading at 40,000 USD” – Wealth Training Company
Michael Novogratz gives his insights into Bitcoin becoming a strategic reserve
El Salvador was ridiculed by many for adding 162 Bitcoins to national reserves in August 2024 when the bellwether cryptocurrency was trading at 40,000 USD.
Imagine the impact on Bitcoin’s price if the sovereign funds begin allocating a fraction of their reserves to the cryptocurrency.
This paradigm shift could mean the bull run in Bitcoin could be in its infancy, bearing in mind the supply of Bitcoin is finite.
“My gut feeling is that it would be good if they do this.
The pledge not to sell the 28 billion dollars worth of Bitcoin, the treasury holds is a big win. Buying some Bitcoin to send a message that we are going to lead the world in cryptos is a good idea,” he said.
Michael Novogratz thinks the USD doesn’t need anything to back it up
“We have the strongest military in the world,” he said.
A foreign army invading the US would be a bad idea, with the country having more guns than people.
“It is the first global asset we have ever dealt with” – Michael Novogratz
US tariffs Michael Novogratz gives his insights
“Trump is great at scaring people, and a lot of this tariff talk is to get the other side to the negotiation table,” he said.
He sees better trade deals for the US in China, Latin America and Europe.
He also sees an increase in the use of Bitcoin ETF options, which he thinks will increase volatility by 100 per cent.
He does believe over time, a year, the volatility will come down.
“When we talked about this, in 2017, Bitcoin was a 100-vol asset, and now it is a 50-vol asset. Over time, it matures, but now it is a hot potato,” he said.
He also sees higher Bitcoin prices rise if sizable sovereign wealth funds buy. “We are seeing a little bit of that out in the Middle East,” he said.
Our desk is only seeing buying, not selling. Most of my friends in the hedge fund business are buyers, not sellers.
But someone out there is also selling a lot, and that is what makes a two-way market.
It is the first global asset we have ever dealt with. There are individual people in every country in the world who are participating in Bitcoin, and you can’t say that about any other asset in the world other than maybe the USD,” he said.
Michael Novogratz gives his insights about the possibility of BTC competing with USD and treasuries
We are still a small market, even at 100,000 USD BTC at a market cap of 2 trillion dollars. What is gold? 15 trillion. So we are one-seventh of gold. It is a long way before we start to be a headwind for the dollar.
We are more of a report card on how global fiscal stewardship is doing.
Despite intelligent people trying to bring down debt to GDP, he believes there will still be a significant deficit next year. “That is a risk to the thesis of easy money forever,” he said.
If you see guys come in and say no more easy money, like what they did in Argentina, the economy stalls, inflation comes down, efficiencies go up, and you see all assets rally. Argentina is a good place to invest now because of these reforms.
He sees AI data mining as being more profitable than Bitcoin mining.
