- Mike Novogratz, founder of Galaxy Digital, has said that Bitcoin will eventually overtake gold in value, partly driven by baby boomer wealth pouring into spot ETFs.
- He said inherited wealth flowing from boomers to younger generations would further drive Bitcoin’s longer term price.
- In the short-term Novogratz says Bitcoin remains volatile and he expected a correction back down to the mid US$50k range, before the price starts to climb again.
Galaxy Digital Founder and CEO, Mike Novogratz, has told Bloomberg Television he expects Bitcoin to one day be larger than gold, saying the OG cryptocurrency acts as a store of value similar to gold but is easier to trade and more attractive to younger investors.
Novogratz said he thinks much of the growth in Bitcoin’s market cap will come through baby boomers investing in Bitcoin spot ETFs, and eventually that wealth will be inherited by the next generation of investors who are likely to invest even more heavily into digital assets.
Related: U.S. Financial Giants Embrace Spot Bitcoin ETFs, as Brazil Welcomes IBIT
Bitcoin, Boomers And Beyond, Baby!
Novogratz said Bitcoin ETFs have, for the first time, allowed anyone who wants to invest in Bitcoin to easily do so, causing a flood of boomer wealth to pour into Bitcoin and creating a new phase of price discovery:
This is probably the first time in the history of Bitcoin that we have true price discovery — and what I mean by that is this is the first time that anyone who wants to buy it has easy access to buy it.
Mike Novogratz, Galaxy Digital Founder and CEO According to Novogratz boomers have a hell of a lot of wealth to play with—he estimates around US$85 trillion. He said that if investment firms start recommending their boomer clients invest, say, 3% of their wealth into Bitcoin—that would amount to a whopping US$2.5 trillion, more than double the current market cap of Bitcoin.
But going beyond the immediate outlook, Novogratz says it’s inevitable Bitcoin will eventually become a larger asset than gold when boomer wealth is inherited by younger generations who are more comfortable with digital assets:
We know gold is a US$12 trillion asset — Bitcoin’s about a tenth of gold. Could Bitcoin be half of gold? At one point sure it could be, it will be. And at one point it’ll be larger than gold…For every Charlie Munger, god bless his soul, who passes away, that money is finding its way into Gen Z and Millenials and they feel much more comfortable with digital gold than old clunky gold.
Mike Novogratz, Galaxy Digital Founder and CEO Related: Pantera Capital’s Latest Report Foresees a Massive Crypto Bull-Run
Bitcoin’s Short Term Outlook Remains Volatile And Unpredictable
While Novogratz is bullish on Bitcoin’s long-term performance, he cautioned that in the short term the asset continues to be highly volatile, stating that the crypto market has gotten to “very frothy, frothy levels”. He predicts a correction to the mid US$50,000 range before BTC continues its ascent.
As for what might trigger a correction, Novogratz wasn’t sure. He said: “you never know why corrections come, something happens and people shift mindset.”
Novogratz also warned retail investors against using huge amounts of leverage available on some crypto exchanges to YOLO into extremely volatile crypto assets:
If I see someone betting 15 to 1 on something as volatile as Bitcoin, I’ll tell ‘em you need to go to your shrink here, that’s just a recipe for disaster.
Mike Novogratz, Galaxy Digital Founder and CEO
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