Alternative Investments/Digital Assets: Bitcoin Perma-Bull Mike Novogratz Is On A Roll
The Galaxy Digital boss sees bitcoin at $65,000.
The “network effect” has taken bitcoin over, says Novogratz.
In a nutshell, the network effect is a rapid improvement in the value of an asset or service because of its adoption by an increasing number of people.
As this is being written, bitcoin is hovering around $17,000. The cryptocurrency is in a bull grip, having risen from a March low of $3,966 to today’s (and 52-week) high of $17,092.
Proponents such as Novogratz would have done well on their holdings – bitcoin’s year-to-date return is 137%, while it put on 109% over the past 12 months, according to MarketWatch.
Participating in a Twitter poll initiated by actress Maisie Williams on whether she should go long on bitcoin, Novogratz commented:
“I bought more $BTC last night at 15800. It’s going to 20k and [then to] 65k,” he tweeted. (Coin Telegraph)
In further justification, the long-time bitcoin bull said:
“The network effect has taken over. I see tons of new buyers and there is very little supply. It’s an easier trade here (than) at 11K. So YES, buy it.”
Record quarter at Novogratz’s Galaxy Digital Trading
Meanwhile, Galaxy Digital Trading delivered the best quarter in its history in the third quarter, with a trading volume of approximately $1.4 billion in the period, and up 75%+ year over year.
According to Novogratz, Galaxy Digital took multiple actions in the second half of 2020 to position itself “for the clear, incoming wave of institutional adoption ahead of digital assets and blockchain solutions by investors, corporates and governments.”
Acquisitions to boost the trading business of Galaxy Digital
Last week Galaxy Digital announced the acquisition of two leading cryptocurrency trading firms: DrawBridge Lending, an innovator in digital asset lending, borrowing, and structured products, and Blue Fire Capital, a proprietary trading firm specializing in market-making and two-sided liquidity for digital assets.
According to Novogratz, corporates and institutional investors were getting to be increasingly knowledgeable, as well as comfortable with investing in digital assets. He added that the strategic acquisitions would “help further meet what we believe will be an even bigger wave of institutional demand.”
“DrawBridge and Blue Fire’s market-leading capabilities will enable us to further amplify our strong position as a go-to trading desk in digital assets and more rapidly grow our innovative portfolio of trading products and services,” said Christopher Ferraro, President of Galaxy Digital.
Launch of bitcoin fund in Canada
According to an announcement Monday, Galaxy Digital has partnered with major Canadian investment company CI Global Asset Management to launch a public bitcoin fund in the country.
Related Story: Novogratz Prefers Bitcoin To Gold; Is Short On Stocks
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