[ad_1]
Mike Novogratz said institutional investors are waiting for the next narrative shift in a recent interview at the Bitcoin 2021 conference in Miami. The CEO of Galaxy Digital believes the market is now in a consolidation phase after the price drop last month. Novogratz also commented on what the rising challenge could mean for banking operators in the near future.
Mike Novogratz thinks Bitcoin investors are waiting for a new story
Galaxy Digital CEO Mike Novogratz believes Bitcoin is still in a consolidation phase after the price drop recorded last month. According to the entrepreneur, potential investors are waiting for the next change in the Bitcoin narrative. This new push would prompt them to start pumping money back into digital assets. Novogratz explained in an interview with Yahoo Finance that he believes institutional investors are to blame for the recent price drop.
Institutional investors were able to rack up cheap Bitcoin at prices of $ 9,000, and with the sudden rise in prices this year, they had to take profits. Novogratz specifies:
A year later, it’s $ 60,000 and the urge to ring the cash register is such a deep-rooted human urge that that’s what happened… We are going to see a long period of consolidation… and you’re waiting for the new narrative to come along that brings the next wave of money and I think we’re in one of those times right now.
Novogratz believes the new narrative shift is already underway. A Bitcoin or crypto ETF could bring that new blood to the market. These instruments could push crypto to older Americans, traditionally skeptical of cryptocurrency investments. Galaxy Digital, Novogratz’s company, applied for a Bitcoin ETF in April.
The challenge will affect traditional banking services
Mike Novogratz also commented on the state of the challenge and how it will affect the traditional banking industry in the near future. For him, the next five years will see the world surprised by the rise of the challenge. This means that banking services will suffer in comparison, due to the regulations they have to comply with. Defi protocols, on the other hand, are pretty much free to offer whatever return they want based on their activities. Traditional financial service providers will fight to get them regulated.
In any case, the entrepreneur thinks that the banks are fighting a losing battle. He underlined:
Banks are going to lobby like crazy – less against bitcoin, more against Defi – but bitcoin is the Trojan horse for getting everything into digital assets and therefore revolutions don’t happen without a bit of bloodshed.
What do you think of Mike Novogratz’s thinking on the market? Tell us in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or business. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, good or service mentioned in this article.
[ad_2]
picture credit