Michael Novogratz sees cryptocurrencies recovery down to institutional buying.
Galaxy Digital CEO Michael Novogratz says that cryptocurrencies, such as bitcoin, have bounced back because institutional investors bought the spring, May, June cryptocurrencies crash this year.
“Galaxy Digital CEO Michael Novogratz says that cryptocurrencies, such as bitcoin, have bounced back because institutional investors bought the spring, May, June cryptocurrencies crash this year”
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Leading cryptocurrencies started 2021 with a rally. The largest cryptocurrency by market capitalization, Bitcoin touched an all-time high of around $65,000 in April 2021. Ethereum, the second-largest cryptocurrency by market capitalization also reach its all-time high of $4,180 during the same period.
But it has been a volatile year for cryptocurrencies, spurred on by uncertainties over regulations and China cracking down on Bitcoin mining, claiming that it was sapping too much energy from the grid.
China’s crackdown on Bitcoin miners came in June during the same month when it rollout the digital version of the yuan, which was an unlikely coincidence.
Cryptocurrencies entered a sell-off in May and June with the majors Bitcoin falling to around $29,000 and Ethereum down to $1,700.
Cryptocurrencies sell-off reached a climax In late May-early June and has been recovering ever since.
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Michael Novogratz sees cryptocurrencies recovery down to institutional buying the dip
“Crypto has bounced back because institutions are buying” said Michael Novogratz.
Michael Novogratz brought up the FTX exchange as an example. The exchange recently raised $900 million from more than 60 investors, putting the company’s valuation at $18 billion. Investors included Softbank Group Corp., venture capital firm Sequoia Capital, private equity giant Thoma Bravo, Daniel Loeb’s Third Point, the Paul Tudor Jones family, and British hedge fund manager Alan Howard.
“If banks had the transparency of defi protocols, we would not have had the mortgage crisis. Defi will win because it’s better” – Mike Novogratz
Michael Novogratz noted that institutions are some of the smartest investors in the world and they are participating in the crypto space, he said: “That sent a signal to the whole crypto market that this isn’t going away” added Michael Novogratz.
Regarding the US. Senator Elizabeth Warren’s anti-crypto stance, he stated, “We need to do a much better job going to D.C.” to educate lawmakers.
“This was partly a big short-covering rally and partly recognition that this is a real market that isn’t going anywhere” said the Galaxy Digital CEO.
Novogratz also responded to Warren’s anti-cryptocurrency stance on Twitter
“Banks charged $12 billion in overdraft fees, a fortune in ATM fees, a fortune in checking account fees. But you keep going after crypto was saving and money transfer is a fraction of banks. Good job Senator Warren. You don’t seem so progressive to me” he tweeted, elaborating:
“If banks had the transparency of defi protocols, we would not have had the mortgage crisis. Defi will win because it’s better” said Michael Novogratz.