Bitcoin Volatility Likely to Keep Coming Down, Mike Novogratz Explains Why
The hedge fund guru Mike Novogratz believes that Bitcoin volatility is expected to continue falling in comparison to other altcoins. He gives his reasons for this.
The CEO of Galaxy Digital crypto bank and the former Goldman Sachs asset manager, Mike Novogratz, has visited the Squawk Box show to discuss Bitcoin.
He stated that Bitcoin’s volatility is less than Ethereum as well as other altcoins. He also said they believe that volatility for Bitcoin will continue to fall lower.
“I do think volatility certainly in Bitcoin is coming down”
Mike Novogratz told the co-host of the show, Joe Kernen, that as increasing numbers of institutions are transferring funds into Bitcoin the volatility of the world’s most popular cryptocurrency is decreasing and will continue in that direction.
According to the Galaxy Digital CEO said it will likely be the case as institutions do not expect immediate gains from BTC therefore they are considering Ethereum and other altcoins which have higher volatility as per Novo.
He believes that many investors will be looking for “another coin of the month.” It will remain this way, Novo believes. He is still convinced it is true that Bitcoin is a custom-designed store of value that will never become an exchange currency, not regardless of the existence of the Lightning Network that allows low-cost and speedy BTC transactions using the blockchain.
“I do think volatility certainly in #bitcoin is coming down,” says @Novogratz. “As institutions come in we are seeing less volatility and I think that is a good thing. I don’t think bitcoin becomes a transactional currency. I think it is tailor made to be stored value.” pic.twitter.com/7VkU0xkBn6
— Squawk Box (@SquawkCNBC) December 23, 2021
Novogratz added that she witnessed a huge acceptance rate for Bitcoin that took place in the year because of Visa’s efforts. Visa, the U.S. payment processing giant has allowed more than 80 million merchants across the globe to accept cryptocurrency.
In addition he also reminded Joe Kernen that last year more than $30 billion of Venture capitalists were poured into Bitcoin. This month Novogratz declared that Bitcoin will never fall below $42,000.
Peter Schiff puts his two points in
Vocal Bitcoin anti-BTC naysayer Peter Schiff, CEO of Euro Pacific Capital and ShiffGold fund, who has a tendency to talk about Bitcoin more frequently than BTC advocates could not refrain from making a sarcastic remark about “Bitcoin pumpers” on CNBC.
He was on Twitter to claim it was Bitcoin could be “whatever buyer wants it to be.” This was a reference to the fact that, due to these “pumpers”–perhaps the Novogratz reference was in his tweet too–Bitcoin is highly dependent on the NASDAQ and, consequently, an investment that is risky. Also, it could be a good investment “if you want a safe haven.”
“The perfect asset,” the man laughs and concludes.
According to Bitcoin pumps on CNBCFastMoney, Bitcoin is both an investment that is risk-free and a risk-off-asset simultaneously. It is highly linked to the NASDAQ for those who want to take risks however, it’s also a valuable store when you need a secure place to be. The ideal asset. It’s what a buyer would like it to be.
— Peter Schiff (@PeterSchiff) December 23, 2021