Michael Novogratz latest insight into the trillion-dollar crypto market was put forward in his latest interview. 

The relatively young crypto market is going through more teething problems with the US Securities and Exchange Commission, which recently announced that it is suing Coinbase, the largest US crypto trading platform.  

The SEC is allegedly accusing Coinbase of illegally operating without having first registered with the regulator. 

“Coinbase’s alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection,” SEC Chair Gary Gensler tweeted.

“Coinbase’s alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection”

SEC Chair Gary Gensler

But the SEC could be skating a fine line where over-regulations might push the crypto centre of gravity to Hong Kong, which would disadvantage web 3.0 innovation in the US. 

Institutions are not playing right now, according to Michael Novogratz’s latest insight. 

SEC regulatory wrangling has resulted in Mike Novogratz’s Galaxy moving operations offshore.

“Crypto is lackadaisical, l there is a constant bid from retail. We are seeing it through all the platforms, and there is not much institutional excitement right now,” he said.

So the dog days of summer started early in crypto, and it doesn’t thrill me, but that is just the reality,” he said. 

“Crypto is lackadaisical, l there is a constant bid from retail. We are seeing it through all the platforms, and there is not much institutional excitement right now”

MICHAEL NOVOGRATZ

Michael Novogratz latest insight on new crypto developments

“WeChat recently enabled bitcoin and crypto trading on the biggest single platform in the world. That is a pretty big deal,” he said. 

Michael Novogratz also noted that Hong Kong has officially allowed crypto trading for customers through regulated exchanges for the first time, and so we are seeing Asian adoption.

Bitcoin is up 65% this year. Ethereum is 55% on lower volatility than we have seen. “They have been two of the best-performing assets there are,” he said.

“Fed will be cutting rates by October, and crypto is off to the races”
Michael Novogratz

“We are seeing that the new buyers are all small, and their aggregating on these platforms whether it is Resolute or Robinhood or the cash app from Square, they continue to buy small amounts and hold them and so ways that make healthy market because these are long term hodlers,” he said.

“We are not seeing an institution come in that has been stopped by Sam and Gary,” he added.

The scam of Sam Bankman-Fried FTX crypto exchange and the need for Gary Gensler SEC regulations is creating uncertainties.

“You got to have some one-year T bills. But I have always lived on the risk curve, and we are on an AI bubble,” he said.

496 stocks of S&P are unchanged, and the other six mega bulls make all tech gains. Bubbles always happen around things that fundamentally change the way we live. The story is so powerful, people buy way in advance and get caught up in the frenzy,” he said.

We could see a real slowdown in the second half of the year. Fed will be cutting rates by October, and crypto is off to the races,” he said.

But the government does not like competition and would prefer institutional investors in T notes, which offer yields. Crypto staking services could be in the firing line.