During a recent interview with Fox Business, Galaxy Digital CEO Mike Novogratz opined that Bitcoin balance sheet companies were overhyped.
“You see a whole new range of…balance sheet company plays. I think that’s probably getting a little overhyped,” Novogratz said.
Novogratz is referring to the growing lists of imitators of Michael Saylor’s Strategy (formerly MicroStrategy). Video game retailer GameStop, for instance, announced that it was raising another $1.75 billion to potentially fund new Bitcoin buys.
Some skeptics fear that debt‑funded Strategy copycats could potentially amplify another market downturn.
A bullish Bitcoin price prediction
Novogratz says that the Bitcoin price is going to be correlated to how fiscally conservative and prudent the US government is. “We had a populist government on the left, and now we have a populist government on the right. They love spending money,” he said.
This spending will result in “a really nice” price trajectory for Bitcoin, according to the Galaxy CEO.
Novogratz, however, refrained from naming a specific price target for the largest cryptocurrency. “Once it goes, you don’t know where it’s gonna stop,” he said.
Last month, as reported by U.Today, he predicted that Bitcoin would be able to reach $150,000 “soon.”
Refreshing pro-crypto environment
Novogratz also spoke about the regulatory crypto thaw in the U.S., noting that the SEC is now inviting industry participants to discuss innovation.
“It’s unbelievably refreshing, and I think that the industry is taking advantage of it…We’ve seen three companies go public in the last six weeks,” the crypto mogul said.
Novogratz has predicted that “a whole bunch more” companies will be tapping into capital markets.
Accelerating crypto adoption
The billionaire believes that cryptocurrency adoption is “really accelerating.”
He predicted that the crypto industry would look “very different” in 24 months compared to today.
Novogatz pointed to such trends as the tokenization of equities and the tokenization of fixed income securities.
The crypto mogul is convinced that asset managers and banking institutions cannot afford not to be engaged in the space.