Institutions Are Backing Bitcoin, Says Mike Novogratz

Cryptocurrencies, such as bitcoin, have recovered, according to Galaxy Digital CEO Michael Novogratz, because institutional investors are purchasing.

Bitcoin has recently taken investors on a wild journey. Cryptocurrencies are inherently volatile because they are a new asset class.

Mike Novogratz

Despite this, the bitcoin price has been on the decline, and the latest recovery above USD 40K provided a psychological boost to investors.

After Amazon dismissed rumours that it was on the verge of backing bitcoin, the rally appeared to be short-lived, but it now appears that the rally may have legs.

Even without Amazon’s support, the bitcoin price has climbed back beyond USD 40,000. The majority of the top ten cryptocurrencies are also in the green.

While all signals pointed to Amazon as the cause of previous market swings, Galaxy Digital Founder Mike Novogratz believes there is another factor driving today’s advances.

“Crypto has bounced back because institutions are buying…This was partly a big short-covering rally and partly recognition that this is a real market that’s not going anywhere, ” says Mike.

Tweets and explanations

In another tweet he praised the DeFi protocol that it’s the best asset till the date as it can replace many physical assets.

Novogratz, a veteran Wall Street hedge fund trader, cited FTX, a cryptocurrency exchange business that recently raised USD 900 million in a Series B financing.

He also praised the calibre of the round’s investors, which included SoftBank and Paul Tudor Jones, among others, claiming that it conveyed a message to the market that cryptocurrencies are here to stay.

Senator Warren portrayed retail investors as victims of the cryptocurrency market’s volatility, which might result in financial losses. Novogratz, on the other hand, isn’t having it.

He went on a Twitter rant, criticising legacy finance for things like bank overdraft fees while also praising the Bitcoin business and its members. Senator Warren “riled up” Novogratz, claiming she “doesn’t seem that progressive” to him.

Another twitter user praised Mike targeting Warren saying she is “supercilious”.

Warren cautioned on Tuesday that the volatility of bitcoin’s price puts retail investors and businesses who take bitcoin at risk. Furthermore, she argued that anyone who utilise bitcoin as a form of payment are criminals.

On which the Galaxy Digital’s CEO replied,

It was disappointing. She was supercilious. She was smug. Really disappointed she hadn’t done any work. This is a progressive technology. She is supposed to be a progressive.

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