The ex-hedge fund manager said that institutional adoption will help stabilize the primary cryptocurrency.
Mike Novogratz – CEO of Galaxy Investment Partners – recently gave his thoughts on Bitcoin’s price volatility going forwards. Here’s what he had to say.
- On CNBC’s Squawk Box, Joe Kernen pointed out to Novogratz that Bitcoin is up 66% on the year, yet down 30% from its high of $69k. He then asked if institutional adoption would lessen this apparent volatility.
- “I think volatility is coming down,” responded Novogratz. He recognizes how Bitcoin is relatively stable compared to altcoins.
- The CEO also mentions that the short-term speculative investors formerly involved with Bitcoin may be moving to other coins with potentially larger upside. Indeed, a CryptoPotato analysis finds that Shiba Inu has absorbed much attention from retail buyers, possibly affecting Bitcoin’s price volatility.
- Though Bitcoin may grow more stable, Novogratz does not believe it will become a transactional currency.
- “I think it is tailor-made to be a store of value,” he said. Though he acknowledges innovations like the lightning network facilitating faster transactions, he maintains that Bitcoin will be digital gold, reiterating his opinion from July.
- Bitcoin’s reputation as a gold-like inflation hedge is growing fast. Bloomberg recently said its deflationary forces would help it reach $100k next year.