Galaxy Digital CEO Michael Novogratz believes that bitcoin has less volatility compared to other altcoins, and over time, the BTC rate will be more stable.
Michael Novogratz shared these thoughts in interview on CNBC’s Squawk Box. Program host Joe Kernen noted that bitcoin is up 66% year-over-year, but is now 30% below the record $ 69,000 reached in early November. He asked Novogratz if institutional investment in Bitcoin could “smooth out” its volatility.
“As more large companies invest in Bitcoin, its volatility is decreasing, which is very good. And yet, bitcoin cannot be called a currency for making transactions, it is more suitable for long-term investments, “Novogratz replied.
He explained that many institutions do not expect to get a quick profit from investing in bitcoin, so they are ready to buy ether and other altcoins due to their high volatility. Since Bitcoin is considered to be an effective vehicle for preserving value, the Galaxy Digital executive advised investors interested in short-term investments to look for other coins with great upside potential. Nevertheless, Novogratz is confident that bitcoin can become “digital gold”.
In 2019, Novogratz said that within 20 years, the market capitalization of bitcoin could “easily” exceed the capitalization of gold. In February of this year, the total amount of investments in bitcoin for the first time reached $ 1 trillion at a rate of $ 54,500 per coin.
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