Novogratz Confident About Bitcoin Trajectory in Spite Musk Tweets

Novogratz Confident About Bitcoin Trajectory in Spite Musk TweetsBillionaire Mike Novogratz, CEO of digital technology investment firm Galaxy Investment Partners reassured investors in a Bloomberg interview last May 17. Novogratz called a three- to six-week Bitcoin price consolidation at around $40,000 – $50,000, and said that his firm is still buying Bitcoin.

What happened: This comes after a series of Elon Musk-related events that sent both Bitcoin and Dogecoin hodlers into a wild roller coaster ride. Earlier this year, Tesla announced its acquisition of $1.5 billion through an SEC filing, in order to “further diversify and maximize” the company’s returns, and to pave the way for the eventual adoption of Bitcoin as a payment method. A few months later, Musk announced that consumers in the US can buy Tesla with Bitcoin, which he then retracted a few weeks later, citing environmental reasons.

Musk also repeatedly tweeted about Dogecoin, saying that he bought Dogecoin for his son so ‘he can be a toddler hodler’. On May 9, Musk starred in an SNL skit where he called Dogecoin “a hustle”, sending the coin’s price down by 30% on the same night.

According to Novogratz, this is an embodiment of something bigger than Musk: it’s a response borne out of people’s frustration with the current monetary policy in the US. While he advises his clients to steer clear of “frivolous” cryptocurrency projects, the fact that communities are banding together is something to be optimistic about. Cryptocurrency price fluctuations and market corrections are to be expected.

On the other end of the spectrum: while Ethereum’s “triple whammy”, (i.e., DeFi, payment coins, and NFTs) might, at first glance, signal a positive prediction for Ethereum value, Novogratz said that it will be healthy if Ether’s prices stabilized at its currency prices.

Why it Matters: While Novogratz acknowledged Musk’s concerns about Bitcoin’s environmental impact, he said that dismissing the coin altogether is a bit rash. “Youtube uses 2.5% of total electricity. We think about that, we’re not gonna say, hey, let’s stop using Youtube. We use electricity for things that we think provide a tremendous amount of value,” he said, maintaining a middle-ground stance on Bitcoin.

With all of that being said, Novogratz was more positive about Bitcoin’s future. “I think they’re gonna see a response from this industry, like you see a response from every industry, to say hey, in this gap of time before all electricity is green which I think is 7 – 8 years away, we should do something to offset our footprints. That’s in banking. It’s in crypto. It’s in tech, it’s in industrial businesses.”

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