Mike Novogratz sees institutions ‘back in the game’

July 29, 2021

Michael Novogratz, Chief Executive Officer of Galaxy Digital, says that cryptocurrencies, such as Bitcoin, have bounced back because institutional investors have (re)joined.

In an interview with CNBC on Wednesday, the CEO of the asset management and investment group zoomed in on Bitcoin’s outlook. When asked for his opinion on Bitcoin’s recent price action and to what has been driving this surge back to the $40,000 bands, he sternly responded:

“Crypto has bounced back because institutions are buying.”

As an example of institutions being in the game, he brought up FTX exchange. The exchange  is a good example of investors backing crypto. The exchange recently raised $900 million from more than 60 investors, putting the company’s valuation at $18 billion. Some of their 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.

Emphasizing the effect that participation of institutions in the crypto space has, he said:

“That sent a signal to the whole crypto market that this isn’t going away.”

Novogratz also said that he doesn’t believe that the  recent price hike was due to the news that Amazon may be accepting cryptocurrency payments:

“This was partly a big short-covering rally and partly recognition that this is a real market that isn’t going anywhere.”

U.S. regulation

The CEO also spoke about cryptocurrency regulation in the U.S. after  US Senator Elizabeth Warren on Tuesday warned that Bitcoin’s price fluctuations put retail investors and businesses that accept bitcoin payments at risk. And she even claimed that individuals who use Bitcoin as money are criminals.

Novogratz said about this development:

“It was disappointing. She was supercilious. She was smug. Really disappointed she hadn’t done any work. This is a progressive technology. She is supposed to be a progressive.”

He then added:

“Crypto goes after the rent takers. If you look at defi [decentralized finance]. If you look at the NFT [non-fungible token] revolution. It’s going to empower artists and creators over the people that used to make money off their backs. So, really frustrating and disappointing”

“It just tells us … We need to do a much better job going to D.C. and educate [lawmakers].”

Novogratz did not just reserve his comments for CNBC as he already took to Warren’s anti-cryptocurrency stance on Twitter on Tuesday:

The post Mike Novogratz sees institutions ‘back in the game’ appeared first on iGaming.

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Author: Peter Siu

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