Prominent expert in asset management and head of Galaxy Digital believes that Bitcoin is going to stabilize for now and begin consolidating, then resume rising in Q4.
In a recent appearance on CNBC’s Squawk Box show, founder and CEO of Galaxy Digital crypto bank Mike Novogratz summarized the reasons that have led to the current increase in the Bitcoin and Ethereum prices.
He believes crypto is likely to resume rallying in the fourth quarter of 2021.
"Prices will probably stabilize here a little bit and consolidate," says @Novogratz on #crypto #bitcoin. "My guess is Q4 the S&P has a good quarter and crypto has a good quarter." pic.twitter.com/Ney9XtxaHa— Squawk Box (@SquawkCNBC) August 25, 2021
Factors that have pushed crypto prices up, as per Novogratz
The former Goldman Sachs asset manager, who first bought Bitcoin in 2013-2014 and grabbed 500,000 ETH from Vitalik Buterin in 2015 when it was still $0.99, believes that the resumption of the crypto rally is down to Walmart and Amazon getting interested in the crypto space as of late.
He reminded the Squawk Box co-host that, recently, these two retail heavyweights have posted job vacancies seeking crypto engineers and chiefs of crypto asset departments.
Novogratz read this as a clear sign that Amazon and Walmart were saying that they firmly intend to be part of this new trend.
Besides, on Tuesday, Visa global payments card giant bought a CryptoPunk NFT (non-fungible token), paying $150,000 in Ethereum, as if also shouting that digital assets are going to be a large part of their business.
Novogratz added that he had spoken to the “guy who runs crypto at Visa” and confirmed Novogratz’s interpretation of this move.
A lot of the financial structure is going to be rebuilt on a blockchain basis, the Galaxy Digital CEO opined.
Community made Washington see an industry in crypto
Novogratz also mentioned the $3.5 trillion infrastructure bill, part of which was expected to be raised by taxing crypto. A certain amendment was proposed by several U.S. senators that would make things very hard for the crypto industry.
However, over the weekend of Aug. 6-7, the crypto community started roaring—calling, emailing and writing to senators and congressmen—explaining that this amendment would be stifling fintech innovation in the U.S., and it was not passed.
Mike Novogratz said that, for just one weekend, Washington saw crypto as an actual industry.
Crypto and S&P 500 may have a good Q4
As for what may happen to Bitcoin and Ethereum from here on out, Novo opined that crypto cannot move up forever and will probably stabilize here and begin consolidating. But in the fourth quarter, Bitcoin and other crypto assets are likely to resume their rally, Novogratz assumed.
He believes that the S&P 500 index is going to have a good Q4 and, perhaps, so is crypto.
The Cycle Started, Mike Novogratz Says – Bitcoin Boom Is Here; Jack Dorsey Boosts BTC’s Price
Mike Novogratz is one of the essential names in the crypto space which is celebrating the booming price of Bitcoin.
Check out what he had to share with his followers and Twitter fans:
Crypto wealth is approx 50bps of global wealth. That means if you don’t have at least 1/2 percent invested in crypto you are short the global benchmark. Most institutions are still at 0. As they move in, that number will go to 1 then 2 then….
The cycle has started.— Mike Novogratz (@novogratz) October 16, 2021
Someone hopped in the comments section and said this; ‘Anyone who has not yet embarked on the crypto band wagon is a simple minded idiot who knows nothing about markets, freedom or wealth creation.’
Jack Dorsey boosts the price of BTC
It’s been also revealed that Jack Dorse said that Square could build a BTC mining system – this obviously triggered a more massive price race for the king coin.
At the moment of writing this article, BTC is trading in the green and the king coin is priced at $61,118.15.
CNBC online publication just noted that Square CEO Jack Dorsey said late on Friday the company is considering jumping into BTC mining business.
Dorsey tweeted that the company is considering a “bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide.”
Square is considering building a Bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide. If we do this, we’d follow our hardware wallet model: build in the open in collaboration with the community. First some thoughts and questions.— jack⚡️ (@jack) October 15, 2021
Dorsey’s goal would be to make crypto mining more accessible. We suggest that you check out the complete thread that Dorsey shared on his social media account in order to learn all the available details.
Pantera Capital’s Dan Morehead: Bitcoin (BTC) Already Up 100% in This Bull Run
How big is median increase in Bitcoin (BTC) price in bullish market phases?
As Bitcoin (BTC) reclaims $62,000 level, Dan Morehead, CEO of the first-ever cryptocurrency-focused VC firm in the U.S., shares the comprehensive statistics of the last six bull runs for Bitcoin.
Bitcoin (BTC) price doubled in 87 days: Bull Run 2021
According to the latest tweet by Mr. Morehead, the Bitcoin (BTC) price witnessed a 2x increase in the first 87 days of the ongoing bullish wave.
#bitcoin at $61,000 is 2x from where we mark the start of this new bull market in July.
For perspective, the median bull cycle went up 15x over 300 days.
More thoughts on the state of the market here: https://t.co/g46sxp7Qe6 pic.twitter.com/Iy96sJvZzO— Dan Morehead (@dan_pantera) October 15, 2021
Unlike many other experts, Mr. Morehead identifies two separate “bull run” phases in 2020-2021. During the previous one, between March 16, 2020, and April 14, 2021, it took 394 days for Bitcoin (BTC) to increase its price 13x and print a new all-time high.
According to his infographic, the most impressive rally ended with a 106x increase of the orange coin’s price in 2015-2017.
That said, the median Bitcoin (BTC) price bull run lasted for 300 days and increased the “king coin’s price” by 15x.
Will Bitcoin ETF mark the top of the BTC cycle?
At the same time, according to “The Next Price Era” letter issued by Pantera Capital on Oct. 6, 2021, the hotly-anticipated approval of Bitcoin (BTC) ETFs is listed amidst the possible “sell the news” events.
Mr. Morehead noticed that the launch of CME Bitcoin Futures and Coinbase direct listing triggered painful bear markets:
Will someone please remind the day before the bitcoin ETF officially launches? I might want to take some chips off the table.
As covered by U.Today previously, similar statements were made by CNBC’s Jim Cramer.
The seasoned analyst also revealed his plans to “cash out” 50% of his Ethereum (ETH) bags.
Bitcoin Will Significantly Underperform Altcoin Market As New Crypto Price Era Unfolds: Pantera Capital’s Dan Morehead
The founder and chief executive officer of Pantera Capital says that investors can expect altcoins to outperform Bitcoin (BTC) in the long term.
In a recent edition of Pantera’s Blockchain Letter, the head of the digital asset management firm outlines Dan Morehead’s key quotes from the SALT 2021 conference in New York. During the conference, Morehead said that even though his company has greatly profited from BTC, he emphasized that most future crypto gains will come from altcoin investments.ADVERTISEMENT
“My perspective is: Bitcoin has been amazing – Pantera Bitcoin Fund is up 67,000% since inception. However, I think the majority of future gains will be from tokens outside of Bitcoin. I know that sounds heretical to some people here, but that’s my professional opinion.”
Morehead compares the rise of Bitcoin and its competitors to that of the tech industry boom during the late 1990s.
“It’s like saying in 1998 that [the] majority of future tech gains would come from outside Microsoft.
At the time, Microsoft was worth $218 billion, Apple $3.5 billion, Amazon was $2.2 billion. Google and Facebook were zero – they didn’t even exist. In the years since Microsoft did great – it went up 10x. However, 80% of the tech gains in these five stocks came from outside Microsoft.
That’s the view I have here – I think BTC is going to go up a ton – like 10x. It’s a great investment…[but] I think the broader portfolio is going to outperform.”
At time of writing, BTC has a market cap of $1.156 trillion while all altcoins combined have a market cap of $1.327 trillion, according to CoinMarketCap.