Galaxy CEO Mike Novogratz said trillions of dollars of baby boomer wealth will eventually end up in Bitcoin. Marco Bello—Getty Images
Galaxy Digital CEO Mike Novogratz told Bloomberg TV in an interview Thursday afternoon that investors will soon prefer trading digital gold over real trading.
Although Bitcoin's current market capitalization is still less than one-tenth that of gold ($13.79 trillion vs. $1.21 trillion), the top cryptocurrency by market cap will soon become a world-renowned wealth He pointed out that it could be replaced by other storage facilities.
“It will be, and it won't wait. It will be bigger than gold,” Novogratz said.
He said baby boomers have an estimated $85 trillion in wealth, the vast majority of which is managed by registered investors, about half of whom have access to the 10 recently approved Spot Bitcoin ETFs. Trillions of dollars in new liquidity could be generated if platforms like BlackRock and Fidelity, which focus on baby boomer wealth, encourage customers to allocate at least 1% to 3% of their assets to cryptocurrencies. .
“This is probably the first true price discovery in Bitcoin's history,” he said, as it has never been accessible to both institutional and retail investors before.
Novogratz also predicts that allocations to digital assets should accelerate even more once the baby boomer wealth bubble outgrows its generation.
“Even though Charlie Munger is dead, that money is going to Gen Z and Millennials, who feel much more comfortable with digital gold than old, clunky gold,” he said. Ta.
However, Novogratz warned that a Bitcoin price correction could occur in the coming days or weeks, adding: “I would say we are at a very frothy, frothy level.” he said. But he doesn't think Bitcoin will rise again below the mid-$50,000 mark.
Bitcoin soared to $63,968 on Wednesday, close to its all-time high of about $69,000, as cryptocurrency providers like Coinbase suffered outages due to a spike in traffic on their apps and sites. It's exhausting.
Demand is being driven by huge net inflows into ETFs, which set a new record for single-day trading volume on Wednesday, with more than $7.6 billion traded. bloomberg data. The previous day, BlackRock saw $520 million in inflows into its ETF, iShares Bitcoin Trust (IBIT), the largest single-day inflow ever.
Additionally, Bitcoin is set to undergo the so-called “halving'' on April 19th, when the daily supply of newly minted coins will be reduced by 50%, which is also a tailwind. This event has historically caused prices to soar, rising by an average of 14% during upswings.
But Matteo Greco, an analyst at Finekia International, said the course of the cycle was already “very different” from the previous three half-years, with record highs approaching two months before the event. Ta. “This has never happened before historically,” he said, adding that Bitcoin typically peaks six to 12 months after a halving.
According to , ETF inflows averaged $500 million on Monday and Tuesday. bloomberg This equates to approximately 10,000 Bitcoins being purchased per day. However, miners have only minted 900 Bitcoins, and will soon reach 450 Bitcoins, said Markus Thielen, CEO of 10x Research. luck.
“Demand is being met by inventory sitting on exchanges, which is also depleting fairly quickly,” he said.
