Bitcoin Poised for Growth as Galaxy Digital CEO Foresees Potential Breakout

Mike Novogratz, the founder and CEO of Galaxy Digital, has expressed his belief that the value of the most popular cryptocurrency, Bitcoin, will increase before the end of the year. Following a period of stability between the $28,000 and $32,000 area, Novogratz underlined the Federal Reserve’s possible involvement in sparking a significant price spike for Bitcoin in an exclusive interview with CNBC.

Novogratz anticipates a significant rise in the price of Bitcoin after it clears the key resistance mark at $31,500. According to him, this development may coincide with the Fed’s decision to stop raising interest rates and maybe even adopt rate reductions, acting as a driver for the cryptocurrency’s upward trend.

Institutional ETF Applications Pave the Way for Bitcoin Adoption

Novogratz noted the advantages of the most recent spot Bitcoin ETF applications made by institutional investors, such as market leaders Invesco and BlackRock. According to him, this event marks a big step towards Bitcoin becoming more widely accepted as a genuine asset class.

Larry Fink, the CEO of BlackRock, is a prominent figure, and Novogratz acknowledged the significant influence Fink’s support may have on the international financial community. When combined with the ease and security that ETFs provide, Fink’s acknowledgement of Bitcoin as a workable alternative asset makes them an alluring entry point for investors who are wary about custodial issues.

Novogratz explained, “What I do think is BlackRock, Invesco… the group of ETF providers is a real signal that adoption is coming. Think about it… [BlackRock CEO] Larry Fink travels the world talking to the biggest pools of capital, it makes it really easy when he’s out there saying Bitcoin’s an alternative. And if you’re nervous about who’s your custodian, the ETF is a really easy first step. And it is a first step for a lot of people.

And so I just think if it happens, it’s the seal of approval from the SEC and the US government that this is an asset. And there is this giant infrastructure because remember it’s not just BlackRock. Like I said, Invesco is bigger in ETFs than BlackRock. And there are many players… the SEC is not going to approve one. So you’re going to have these giant sales forces out there giving access to people that didn’t have access before.”

The CEO of Galaxy Digital thinks that more industry players would compete to give investment options to a wider variety of investors when the SEC approves Bitcoin ETFs rather than just one supplier. At the time of writing, Bitcoin is trading at $31,392.05.