The CEO of Galaxy Investment Partners, Michael E. Novogratz, told CNBC that the price of crypto stocks is “almost like a mania” before the U.S. Securities and Exchange Commission (SEC) makes a decision in January about spot bitcoin exchange-traded funds (ETFs).
The CEO of Galaxy Digital explained why crypto-focused stocks are going through the roof because big investors are excited about the space.
The CEO of Galaxy Investment Partners, Michael E. Novogratz, told CNBC that the price of crypto stocks is “almost like a mania” before the U.S. Securities and Exchange Commission (SEC) makes a decision in January about spot bitcoin exchange-traded funds (ETFs).
Novogratz said, “I’m a little nervous because it feels so good.” “Corrections happen all the time, but in general we’re still in a bull market phase.”
When asked about bitcoin’s 150% price increase, Novogratz said, “Bitcoin is up 150% in the year.” For people who don’t believe in bitcoin, that’s a small victory lap.
In his speech, he talked about how the Fed’s move to an inflation-focused economy with room to cut rates was good for the crypto markets. People should pay attention to the Fed’s change of heart; that press talk was exactly what everyone thought it would be, and the markets are reflecting that.
“All of this is based on inflation going down, not on growth coming to an end,” he said.
Novogratz also said that the SEC was likely to make a decision on a bitcoin ETF in 2024 because they were also considering a case from companies like Grayscale that had applications still being processed.
Novogratz said, “I wouldn’t be so bullish on bitcoin if I thought we were going to get a Simpson-Bowles amendment to balance the budget or be really smart with money, but I just don’t believe that will happen.” It’s possible for prices to go through the roof if people start to shift 1% of their stock to institutions. This is because there isn’t a lot of bitcoin or ethereum available.
Decogratz said, “We’ll get this ETF before January 10th. That’s the date Gensler has before he gets in trouble with Grayscale and the lawsuit.”
“It’s just more firewood.” Novogratz said, “The price of crypto stocks is going through the roof like crazy.”
