Mike Novogratz, CEO of Galaxy Digital, believes that the $100,000 price of BTC is just the "beginning" for this king of cryptocurrencies.
Novogratz's assessment came as BTC reached an all-time high of $99,200, closer than ever to the six-figure mark, which some experts say could be the peak of the current cycle.
In an interview on CNBC's Squawk Box, Novogratz stated that BTC surpassing the $100,000 mark is "almost inevitable" at this point.
He shared:
"Typically, when you get to $100,000, there's going to be some correction. But I wouldn't be surprised if we just kept powering higher. We're in a price discovery mode, and supply is still constrained."
Novogratz's optimism stems from several factors, including the "change of mindset" due to the crypto-friendly policies of President-elect Donald Trump. He emphasized that the entire Trump cabinet owns BTC and are strong supporters of digital assets.
He continued:
"I think the rest of the world is going to have to pay attention to this, and we're seeing that happen. We're seeing increased buying from the Middle East, and there seems to be an insatiable demand from the public equity markets. Looking at what MicroStrategy and Michael Saylor are doing, they are the biggest buyers of crypto right now."
Despite his optimism about BTC's ability to surpass $100,000 and continue its strong growth, Novogratz warned that financial leverage in the market is currently at very high levels.
According to data from Coinglass, the open interest of BTC futures contracts reached a record high on November 21.
Novogratz noted:
"There's a lot of leverage in the system right now. The crypto community is using a lot of leverage, so we wouldn't be surprised to see some correction in the near term."
However, Novogratz remains confident in BTC's floor, predicting that the price will not drop below $80,000, the level it maintained before Donald Trump's election victory.
Additionally, he emphasized the risks associated with stocks like MicroStrategy, which tend to be as volatile as BTC. The company's stock has grown 650% this year due to its aggressive BTC purchasing strategy. The software company has also recently raised capital through convertible bonds to increase its BTC holdings, attracting the attention of retail investors.
Other companies, such as Acurx Pharmaceuticals, appear to be pursuing a similar strategy, using BTC on their balance sheets. However, Novogratz cautioned investors not to view these crypto-linked stocks as a direct investment substitute for BTC. He advised:
"Rather than investing in these stocks, I would encourage investors to buy BTC directly."
You can view the BTC price here.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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