Galaxy digital founder and CEO Mike Novogratz believes institutional investors are behind Bitcoin’s recent rise. In an interview with BBC World News Today, Novogratz said governments around the world were painting money in large amounts and “debasing fiat money.” He however said that the increasing number of institutional investors was the bigger story. He noted that big firms who were once opposed to crypto have changed their tunes over the last three years. According to Novogratz it’s a combination between limited BTC supply and rising institutional demand.
“Now we’re seeing places like PayPal — at 340 million customers — servicing Bitcoin and selling Bitcoin along with big insurance companies in the United States. As the institutions move in, there just is not a lot of supply. There are a lot more than 21 million millionaires out there.”
Macro Investor Raoul Pal echoed Novogratz’s bullish sentiment, saying that he believes it’s possible for the price of BTC to reach “between $400k and $1.2M” by the end of the year if trends continue. Pal revealed that 98% of his liquid net worth was held in BTC and Ethereum yet he believes that he doesn’t own enough.
Mike Novogratz who a few months ago had a relatively conservative opinion about the percentage of one’s portfolio that should be exposed to crypto has now changed his tune. He has changed the percentage Bitcoiner’s should be holding from 3% held for five years to 5% held in the same amount of time.
Big institutions have made an entry into the crypto space for the first time. Business Intelligence firm Mictrostrategy announced that it had bought $425 million worth of BTC- an investment now worth more than $1.2 Billion. Last week, we found out that Scaramucci’s firm Skybridge investments had bought $182 million worth of Bitcoin. The entry of smart money is a good explanation for BTC skyrocketing past 30K to reach an all-time high.
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