Mike Novogratz, the billionaire founder of Galaxy Digital (OTC: BRPHF), is bullish on Bitcoin's (CRYPTO: BTC) future, predicting a floor of at least $50,000 and room for further growth towards $100,000.
Novogratz, in a Wednesday interview with CNBC, attributed Bitcoin's robust performance primarily to the steady inflows into the newly sanctioned spot Bitcoin ETFs in the U.S.
He emphasized that as long as these inflows remain positive, Bitcoin's price trajectory is expected to ascend.
Novogratz warned of a potential correction if net inflows turn negative, highlighting the current market's buoyancy and elevated funding rates.
However, he remained optimistic about Bitcoin's floor price, estimating it to be between $50,000 and $55,000, unless unforeseen dramatic events unfold.
The market experienced a paradigm shift following the approval of spot Bitcoin ETFs, Novogratz observed, pointing out that this development has opened avenues for Baby Boomers to invest in Bitcoin through registered investment advisors.
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He also noted the reluctance among Bitcoin investors to sell, with many measuring their wealth in Bitcoin rather than in dollars.
With Bitcoin venturing into uncharted pricing territory, Novogratz speculated it might soon breach the $100,000 mark.
Despite the rapid accumulation of Bitcoin by spot ETFs, he believes these funds will not hold more than 20% of all Bitcoin, citing a future balance and the preference among some investors to personally custody their coins or use foreign custodial services due to distrust in their home country's stability.
On the Ethereum (CRYPTO: ETH) front, Novogratz highlighted the recent rally that has seen Ether's price reach about $4,000, driven largely by the anticipation of the U.S. Securities and Exchange Commission (SEC) approving spot Ethereum ETFs. Given the existence of futures-based Ethereum ETFs, Novogratz is confident that spot ETFs for Ethereum will receive approval, emphasizing the necessity for such a development in the market.
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