Monday, 4 January 2021

How institutional investment brought bitcoin to where it is today according to Novogratz

How institutional investment brought bitcoin to where it is today according to Novogratz

Quick take

1 minute read

Michael Novogratz is of the belief that the massive influx of institutional investment over the past year has helped drive bitcoin to where it currently stands at more than $30,000 at the time of writing.Recently, the CEO took part in an interview with BBC world news and said that governments all over the world are printing money and “debasing Fiat currency“. 

Michael Novogratz, the chief executive officer and founder of galaxy digital is of the belief that the massive influx of institutional investment over the past year has helped drive bitcoin to where it currently stands at more than $30,000 at the time of writing.

Recently, the CEO took part in an interview with BBC world news and said that governments all over the world are printing money and “debasing Fiat currency“. As a result, this was triggering the consistent bullish activity that bitcoin is experiencing however, institutional investors could be having a big impact on the leading coin. He went on to say that massive companies have warmed up to the idea of bitcoin over the past few years and as a result, this has potentially impacted the supply of available tokens.

“Now we’re seeing places like PayPal — at 340 million customers — servicing Bitcoin and selling Bitcoin [along with] big insurance companies in the United States. As the institutions move in, there just is not a lot of supply… There are a lot more than 21 million millionaires out there.”

Sharing the same viewpoint, Raoul Pal said that he believes it could be possible for bitcoin to reach between $400,000 and even up to $1 million. If the trends are to continue, this could happen by the end of 2021.

Interestingly, the Galaxy digital founder changed his opinion on what percentage of portfolio investors should be allocating to the leading cryptocurrency. Before November last year, the CEO said that enthusiasts should invest up to 3% in bitcoin and hold it for five years. But just last month, the CEO said that new investors should put 5% into bitcoin because the asset is, in his opinion, not going back to 0.

Fun on the BBC. pic.twitter.com/mTSNXMVceZ

— Mike Novogratz (@novogratz) January 3, 2021

Some massive institutions have got involved heavily with the crypto space over the course of 2020. MicroStrategy is one such company that announced it hadn’t bought $425 million worth of the digital asset and later added $650 million worth of bitcoin to its holdings. It is safe to say that 2020 was the year of institutional investment when it came to the bitcoin industry.

For more news on this and other crypto updates, keep it with CryptoDaily

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Title: How institutional investment brought bitcoin to where it is today according to Novogratz
Sourced From: cryptodaily.co.uk/2021/01/how-institutional-investment-brought-bitcoin-to-where-it
Published Date: Mon, 04 Jan 2021 09:31:48 +0000


How institutional investment brought bitcoin to where it is today according to Novogratz

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