Novogratz and Others Becoming More Bullish With Bitcoin

Written by

Dylan B

Cryptocurrency Writer

A recent statement made by Michael Novogratz, the successful founder of Galaxy Digital, indicated that he has become more bullish in Bitcoin in recent months despite the significant dip in overall price from 2017.

This begs the question, why are investors like Novogratz continuing to invest their faith and money into the coin without hesitation?  

The unwavering belief in crypto and blockchain seems to stem from the major changes taking place within the cryptocurrency industry. More and more large companies and institutions are taking the steps necessary to adhere to rules and regulations and to create a system that is more transparent, trustworthy, and secure.

These changes have produced the desired effects as we have seen an increase in accredited and institutional investors beginning to come into the market and invest money in projects. Jonathan Watkins, the managing editor for Global Custodian and the Trade, said this regarding the growing trend:

It’s fascinating to see that despite the widely-publicized concerns around regulation, custody and liquidity, endowments have been factoring crypto-related investments into their allocations, and very few are showing intentions of stepping away. All the talk over the past 18 months has been around when institutional investors will begin participating in cryptocurrency investments, but it turns out they had already arrived, in the form of endowment funds.

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Another major concern in this market is determining what will help to pull crypto out of the bear market, something that concerns Bitcoin specifically due to the major drop of $20,000 to $5,000. Novogratz believes that this previous bull run was due to speculation and fear of missing out, stating:

That was a drug, and I don’t say that lightly. When you’re in the speculative mania, testosterone is boiling over and there’s a lot of greed. The audience is more sober now—the drug is gone. If anything we’re on the other side, at the stage where there’s the pessimism, and the fear, and the “Oh my God, it’s going to zero.” But it’s not going to zero. We’re at the methadone clinic.”

As many investors believe, we are finally out of the era of speculation and excitement and can now move into a more stable and profitable era where crypto is valued based on functionality and usability rather than potentiality.