Galaxy Digital CEO Mike Novogratz believes Bitcoin (BTC) hitting the monumental $100,000 mark is “just the start” for the flagship crypto.
Novogratz’s comments come as Bitcoin registers a new all-time high near $99,100, closer than ever to the six-figure price level, which some argue could be the top for this cycle.
Speaking on CNBC’s Squawk Box, Novogratz emphasized that surpassing $100,000 is “almost inevitable” at this point.
He added:
“Normally you hit 100, you bounce off of it. I would not be surprised if we go much higher. We are in price discovery, there is not a lot of supply.”
Novogratz’s optimism stems from several factors, the first of which is a “paradigm change” brought by President-elect Donald Trump’s pro-crypto stance. He highlighted that Trump’s entire cabinet owns Bitcoin and is a proponent of digital assets.
He added:
“I think the rest of the world has to take notice, and we are seeing it. We are seeing the buying from the Middle East. Right now, it seems to be an inexhaustible demand from the public equity market. You look at what MicroStrategy, at what Michael Saylor is doing, and that’s the big buyer of crypto right now.”
Potential of a correction
Despite his optimism with Bitcoin flying past the $100,000 mark with the strength to keep growing further, Novogratz cautioned that the current market leverage is also extremely high.
According to Coinglass, Bitcoin futures’ open interest reached an all-time high on Nov. 21.
Novogratz stated:
“There’s a ton of leverage in the system right now. The crypto community is levered to the gills, and so there will be a correction.”
Despite the anticipated corrections, Novogratz remains optimistic about Bitcoin’s floor, predicting it will not retreat below $80,000, the level it hovered around before Trump’s victory.
Novogratz also highlighted the risks in equities like MicroStrategy, whose performance mirrors Bitcoin’s volatile trends.
MicroStrategy’s shares have skyrocketed 650% this year, fueled by its aggressive acquisition of Bitcoin. The software company recently raised additional capital through convertible bonds to expand its crypto holdings, which has captivated retail traders.
Other firms, like Acurx Pharmaceuticals, appear to be following MicroStrategy’s lead in exploring Bitcoin for their balance sheets. However, Novogratz cautioned against relying on crypto-linked equities as a proxy for direct investment. He advised:
“I personally would tell my investors to buy straight Bitcoin.”
