Mike Novogratz announced that institutional investors are looking forward to the next narrative change in a recent interview at the Bitcoin 2021 conference in Miami. The Galaxy Digital CEO feels that the market is now in a consolidation phase after the price drop last month. Novogratz also explained what the rise of DeFi could mean for banking operators in the near future.
Mike Novogratz Thinks Bitcoin Investors Are Waiting for a New Narrative
Galaxy Digital CEO Mike Novogratz believes that bitcoin is still in a consolidation phase after the price crash last month. According to the entrepreneur, potential investors are looking forward to the next shift in the bitcoin narrative. This new push will prompt them to invest money in digital assets again. Novogratz explained in one interview Along with Yahoo Finance, he believes institutional investors are responsible for the recent drop in prices.
Institutional investors were able to deposit bitcoin cheaply at $9K prices, and with the sudden price surge this year, they had to take profits. Novogratz elaborates:
A year later it’s at $60,000 and the urge to ring the cash register is such a deep-seated human urge that this is what happened… we’ll see a long period of consolidation… and you wait for the new narrative that brings The next wave of money and I think we’re in one of those periods right now.
Novogratz thinks the new narrative shift is already in the works. A bitcoin or crypto ETF could bring this new blood to the market. These tools could push crypto to older Americans, who have traditionally been skeptical about cryptocurrency investing. Galaxy Digital, Novogratz’s company, filed An application for a bitcoin ETF back in April.
DeFi will affect traditional banking
Mike Novogratz also commented on the state of Defi and how it will affect traditional banking in the near future. For him, the world will be amazed at the rise of DeFi in the next five years. This means that they will be at a disadvantage when compared to banking services, because of the rules they have to follow. DeFi protocols, on the other hand, are pretty much free to give whatever yield they want according to their activities. Traditional finance service providers will struggle to regulate these.
In any case, the entrepreneur feels that the banks are fighting a losing battle. He emphasized:
Banks are going to be lobbying like crazy – less against bitcoin, more against DeFi – but bitcoin is the Trojan horse to get everything into digital assets and so the revolution doesn’t happen without bloodshed.
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