Hedge fund guru Mike Novogratz believes that Bitcoin’s volatility is likely to continue to decline compared to altcoins and offers his reasons.
The CEO of crypto bank Galaxy Digital and former Goldman Sachs asset manager Mike Novogratz has returned to visit the Squawk Box show to talk about Bitcoin.
He stated that the volatility of Bitcoin is lower than that of Ethereum and other altcoins and that the volatility of the former will continue to decline.
“I think certainly the volatility in Bitcoin is going down”
Mike Novogratz told the show’s co-host Joe Kernen that as more and more institutions flow into Bitcoin, the volatility of the leading cryptocurrency is decreasing and is likely to continue down that path.
The CEO of Galaxy Digital said that this is likely to be the case because institutions do not expect quick gains in BTC, which is why they are considering Ethereum and other altcoins, whose volatility is higher, according to Novo.
He thinks many investors will be looking for “another coin of the month.” And it will continue like this, Novo believes. Still, he still thinks that Bitcoin is a tailor-made store of value and will never be a transactional currency, not even with the existence of the Lightning Network that enables fast and low-cost BTC transactions off the blockchain.
“I think volatility certainly in #bitcoin it’s going down, “he says @Novogratz. “As institutions come in we see less volatility and I think that’s a good thing. I don’t think bitcoin will become a transactional currency. I think it’s tailor-made to be stored value.” pic.twitter.com/7VkU0xkBn6
– Squawk Box (@SquawkCNBC) December 23, 2021
Novogratz also mentioned a great Bitcoin adoption cycle that happened this year thanks to the efforts of Visa. The US payment processing giant allowed 80 million merchants around the world to accept cryptocurrencies.
Beyond that, he reminded Joe Kernen that, this year, more than $ 30 billion of venture capital flowed into Bitcoin. Earlier this month, Novogratz opined that Bitcoin will not drop below the $ 42,000 level.
Peter Schiff does his bit in
Vocal Bitcoin naysayer Peter Schiff, CEO of Euro Pacific Capital and the ShiffGold fund, who talks about Bitcoin more than some BTC evangelists, couldn’t help but make a sarcastic comment about “Bitcoin bombers” on CNBC.
He took to Twitter to suggest that Bitcoin is “whatever the buyer wants it to be.” By that he meant that because of these “pumpers” – perhaps he was also referring to Novogratz – Bitcoin can be highly correlated with the NASDAQ and therefore a risk asset. Or it could be a store of value “if you want a safe haven.”
“The perfect asset,” he concludes sarcastically.
According to #Bitcoin pumpers in @CNBCFastMoney, Bitcoin is an asset with risk and without risk at the same time. It is highly correlated to the NASDAQ if you want risk, but it is also a store of value if you want a safe haven. The perfect asset. It is what a buyer wants it to be.
– Peter Schiff (@PeterSchiff) December 23, 2021